Small industry improves performance and represents optimism for the sector

A positive scenario. In the first quarter of 2023, small industry entrepreneurs performed well, according to Panorama da Pequena Indústria, a quarterly survey by the National Confederation of Industry (CNI). The Performance Index for small industries recorded an average of 44.0 points, a result that can be considered positive when compared to the average performance for the first quarters (42.6 points). The result is also above the historical average (43.8 points).

The index for the first quarter was driven by March, which registered 46.6 points, since January and February were the worst performing months (42.6 points and 42.7 points, respectively). The index remains above the historical average.

According to economist Carlos Eduardo Pinheiro, three factors may have influenced the sector’s improvement. “First, an increase in workers’ income, second, inflation has lost its momentum, it hasn’t dropped yet, but it is losing momentum and with these two factors it brings the third which is consumer confidence. This positively affects consumer confidence, which positively affects consumption”, stresses the economist.

The indicator seeks to analyze the volume of production, installed capacity and the evolution of hiring in companies. Ranges from 0 to 100 points. The higher, the better the performance. The CNI survey is carried out on a quarterly basis and is based on the analysis of small industry data collected in the Industrial Survey, the Construction Industry Survey and the Industrial Entrepreneur Confidence Index (ICEI). The surveys hear, every month, approximately 900 small business entrepreneurs.

positive outlook

Deputy Heitor Schuch (PSB-RS), president of the Industry, Commerce and Services Commission of the Chamber of Deputies, celebrates this growth. “The result positively surprises and gives the feeling that small companies reorganize their businesses more quickly, in their efficiency, in their work, adjust their demands and their company more quickly. I am happy for this number”, says the deputy.

For the parliamentarian, it is important to remember that the Covid-19 pandemic has strongly affected the entire market. “The national industry lost a lot of space in the GDP in the last 20 years, in the last two decades. The pandemic was also very cruel, it was difficult for the staff, especially because inputs in general, which are needed to make a product, increased a lot, even more so when you depended on imports and the purchasing power of consumers was much lower. A lot of people lost their jobs, a lot of people were left without work. The numbers show this very clearly.”