Industrial activity in Brazil fell in May – CNI survey

RIO DE JANEIRO, BRAZIL – Industrial activity decreased again in May this year, with a reduction in hours worked in production and a decline in utilization of installed capacity (UCI), points out the Industry Indicators Survey, the National Confederation of Industry (CNI).

Despite this decline, hours worked are still at levels similar to those observed in February 2020 – before the crisis of Covid-19 – and the UCI is still at a higher level than observed in that period.

According to CNI economist Maria Carolina Marques, manufacturing employment registered a monthly increase of 0.5% in May, the tenth consecutive increase in the non-seasonal series. “This monthly variation is strong for the indicator and was last observed in 2010,” she explains.

According to the survey, real wage mass registered a 0.8% decline in May compared to April, following two months of wage mass growth. And although it fluctuated, as the survey shows, it shows an upward trend that follows employment growth. For the year, the wage mass still shows a cumulative growth of 1.7%.

Real manufacturing sales rose 0.7% between April and May 2021 in the non-seasonal series. The indicator has oscillated between highs and lows since the beginning of the year.

“Nevertheless, we can already say that the indicator assumes a downward trend, as the increases have not offset the decreases, and the indicator is 3.3% lower than in January 2021,” says Maria Carolina.

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