Brasília, July 9, 2003 (Agência Brasil - ABr) - The National Confederation of Industry's (CNI) industrial indicators for May confirm the deceleration of the production rhythm in 2003. According to CNI data, the level of usage of the productive sector's installed capacity in May presented the worst result since January, 2002, while the real sales of the sector fell 0.36% in relation to May, 2002. The salaries of industrial workers also exhibited declines.

In the assessment of the productive sector, the drop in industrial workers' purchasing power amounted to 7.67%, in comparison with May, 2002. "Were it not for exports and agrobusiness, the numbers would be even more negative," said the coordination of the CNI's Economic Policy Unit, Flávio Castelo Branco.

In his view, the growth in production was not as strong as expected. "It is a sign that difficulties have arrived on the labor market." For Castelo Branco, this means less purchasing power in the hands of workers and a tendency for the economy to stagnate. Exports should continue to lever the economy this year, but, to grow more, it is necessary to stimulate "the domestic component," Castelo Branco remarked, referring to the need for investments in infrastructure and the reduction of interest rates. (DAS)