São Paulo, August 26, 2003 (Agência Brasil - ABr) - The real sales (discounting inflation) of São Paulo's industries increased 4.9% in July. On the other hand, the index of the Level of Activity (INA) of industry in São Paulo remained stable in July, compared with June. According to Clarice Messer, director of the Department of Economic Studies and Research at the Industrial Federation of São Paulo (Fiesp), the growth of real sales by industrial firms in São Paulo in July opens the way for a gradual recovery in industrial production.

"The real sales results were very encouraging, in comparison with previous months, and this allows us to forecast that, in the months to come, production increases will accompany the increase in sales," Messner declared.

The cumulative INA index between January to July has declined 1.1%, while real sales managed a small upward move (0.2%). The sector that presented the best performance in July was that of transportation equipment, with an increase of 6.4%. The textile sector did worst, falling 4.4%. (DAS)