Performance of the industrial sector registers unusual advances in April, points out CNI

A study carried out in April 2024 showed an increase in industrial production that was unusual for the period. According to the National Confederation of Industry (CNI), the production evolution index, which usually falls at this same time of the year, reached 51.2 points this month, remaining above the 50-point dividing line for the second consecutive month, indicating significant increase in production.

According to data from the survey, which aims to understand the trend of industrial activity and the expectations of businesspeople, as well as carry out a monthly business opinion survey, the atypical scenario is the result of the growth of large companies, which reached 53.5 points — and stability of the average indicator, which stood at 50.1 points. On the other hand, for small companies, the index showed a drop in production, reaching 47.6 points.

For CNI’s Economic Analysis Manager, Marcelo Azevedo, the progress is linked to the stability of inventory adjustments as planned by manufacturers, which has been happening for five months.

“This more positive moment for the industry is due to the stability of stocks, which has been going on for some time — which means that increases in demand translate into greater production and maintenance of employment. In general, expectations worsened a little between April and May 2024, the variations were small, so that the indices continued above 50 points, showing optimism among businesspeople”, he explains.

In April there was also an expansion in the number of stable employees in large industries. According to the CNI survey, the numbers reached 50.1 points, this being the third month in a row in which the index was above the dividing line of 50 points in April, for the sector. However, there was a drop in the number of employees in small industries.

In the opinion of economist Roberto Piscitelli, professor of Public Finance at the University of Brasília (UNB), the advances that were captured and the maintenance of stocks indicate that the excesses that came from the previous year, 2023, have been eliminated. Therefore, companies are working according to what they had already planned.

“Perhaps it is good to take into account the fact that the increase in production and the favorable expectations regarding large companies lead to the prospect that we will improve salary levels on average. It is the large companies in general that use more advanced technologies and more specialized employees — and, therefore, better paid. The small ones, on the contrary; despite employing a larger number of people, they tend to pay lower wages”, he points out.

Prepared in partnership with 25 Industry Federations, the CNI Industrial Survey presents results by company size, geographic regions and sectors of extractive and transformation industrial activities.

Report, Carol Castro