Ivan Richard
Reporter - Agência Brasil

Brasília - Growth that is "very solid" but "moderate and not quite as intense" is what is expected this year by Flávio Castelo Branco, executive manager of the Economic Policy department of the National Confederation of Industry (CNI). His forecast is based on the data announced Wednesday (5) by the CNI in its survey of industrial indicators.

The CNI study, which sampled around 3000 industries, shows that industrial sales rose 4.55% between May, 2005, and May, 2006. The other three indicators analyzed in the survey also demonstrated improvement: the number of employees, the number of hours worked, and the level of capacity utilization.

According to Castelo Branco, the positive results in the four indicators suggest that the Brazilian economy should continue to grow for the rest of this year. "It's moderate, not quite as intense, but it's a very solid growth." he affirmed.

Castelo Branco believes that domestic consumption has been the cause of this year's good industrial performance. Unlike other periods, when exports were the driving force. "The situation of families and the job market is more favorable, and there have been increases in income and employment as well. The government's social policy of income transfers and the recent hike in the minimum wage strengthened the purchasing power of a segment of the population that is important for consumption," he judged.

Translation: David Silberstein