Rio - Industrial sector growth in July was 0.5%, compared to June. That was the fifth consecutive month of growth. Cumulative growth for the first seven months of the year was 7.8%; compared to the same period in 2003, growth was 9.6%. And for the last 12 months, growth was 5%.

According to the government statistical bureau (IBGE), the numbers show strong performance in durable goods, especially vehicles, equipment and machinery (which are sensitive to wages), and in the export sector.

Silvio Salles, an economist at the IBGE, says that the market expects an increase in the country's basic interest rate next week. "Such an increase will be based on the fact that prices are rising. It may be considered a reason for concern," he said.

Agência Brasil
Reporter: Cristiane Ribeiro
Translator: Allen Bennett
09/09/2004