Rio - The cumulative growth of 7.8% in industrial production in Brazil over the past six months is a feat unparalleled since the second half of 1994, according to Sílvio Sales, Coordinator of the Industrial Department of the Brazilian Institute of Geography and Statistics (IBGE).

In Sales' opinion, the outlook is "very favorable." Industry, which grew 1.1% between July and August, completed six consecutive months of expansion, and there is no indication that this process will be reversed in the short run, he affirms.

"In this trajectory, there is a clear leadership on the part of capital goods (machinery and equipment for industry) and durable goods (household appliances, automobiles, cell phones), sectors that are setting the pace. Intermediate goods (raw materials and inputs) are growing at the average rate for industry, and non-durable goods (medications, clothing, and beverages), at a more modest rate," he reveals.

Sales says that there is a set of indicators pointing to the maintenance of this growth in the short term, including statistics already available from other sources: exports and imports continuing strong; the FGV's (Getúlio Vargas Foundation) Conjunctural Survey with favorable year-end perspectives; and a declining volume of debt defaults.

Agência Brasil
Reporter: Nielmar de Oliveira
Translator: David Silberstein
10/13/2004