Rio, October 7, 2003 (Agência Brasil - ABr) - Industrial production in Brazil grew 1.5% in August, compared with July. According to the Brazilian Institute of Geography and Statistics (IBGE), this is the largest advance so far this year, confirming signs of the sector's recovery. Nevertheless, in comparison with August, 2002, there was a 1.8% decline, the fifth in a row, strongly influenced by declines in the Electric and Communications Material sector, -8.3%, Clothing and Footware, -16%, Pharmaceuticals, -22.9%; and Non-Metallic Minerals, -8.5%.

During the first eight months of the year, the growth rate was negative, -0.5%, in comparison with the same period last year, which, for the Institute, demonstrates that the signs of recovery in the rhythm of industrial activity, which increased in July and August, were insufficient to offset the downward trend in the indexes over longer periods. Over the last 12 months, ending in August, industrial production exhibited a cumulative growth of 1.7%.

According to the study, 13 of the 20 branches that were surveyed grew in comparison with July. Among the branches with greatest weight in the industrial structure, the ones that stood out with positive results were the mechanical sector (2.9%), transportation materials (2.3%), textiles (2.9%), and food products (1.7%).

Durable consumer goods production increased 5.2% in relation to July, the third consecutive positive result for this type of comparison. Compared with August, 2002, consumer goods production continued to show a decline, falling 3.8%. (DAS)