Capacity utilization in industry is at highest level since 1980

28/07/2004 - 20h47

São Paulo - The utilization level of installed capacity in Brazilian industry rose this year from 81.9% in April to 84.2% in July, the highest percentage for the month of July since 1980, when it stood at 85%. This finding appears in the 152nd Conjunctural Survey of Manufacturing Industry, conducted by the Getulio Vargas Foundation's Brazilian Institute of Economics (Ibre/FGV).

The largest increases in capacity utilization levels occurred in the segments of Consumer Goods (from 75.7% in April to 80.4% in July) and Capital Goods (from 79.1% to 81.9%). The Construction Materials sector registered a decline (from 81.9% to 80.8%) in this period.

Intermediate Goods - those whose place comes between raw materials and manufactured products, such as in the paper and cellulose, chemical, and metallurgical sectors - experienced a small drop in capacity utilization, from 87.2% to 86.9%, but continue to evidence a high level, in light of the sector's historical average of 85.7%.

In the historical table presented by the Ibre/FGV, covering the period since January, 1995, July's capacity utilization figure holds third place, trailing only the indexes for October, 1997 (85%), April, 1995 (86%).

Agência Brasil
Reporter: Liésio Pereira
Translator: David Silberstein
07/30/2004