Thais Leitão
Reporter - Agência Brasil

Rio - Industrial production rose 1.6% in May in comparison with April. This was the largest increase since last December (2.5%). May's growth represented a 4.8% increase in relation to May, 2005. So far this year, the industrial sector has grown a total of 3.3%, and over the 12 months ending in May, growth amounted to 2.6%, the same as in the previous 12-month period, which ended in April.

These data are from the Monthly Industrial Survey - Physical Production - Brazil, released yesterday (6) by the Brazilian Institute of Geography and Statistics (IBGE).

According to the IBGE, May's favorable performance in comparison with May, 2005, was assured by the expansion that occurred in 23 of the 27 activities surveyed. The institute also pointed out that the results reflect the fact that May included one more business day this year.

The industrial segments with the biggest positive influence were motor vehicles (9.4%), led by automobiles and engine parts and accessories; food (6.5%), principally unrefined sugar; office and information equipment (49.3%), with a major contribution from computers and monitors; and extractive industries (6.7%), especially iron ore and petroleum.

Of the four segments which showed losses, the one with the biggest impact on the overall index was electronic materials and communications equipment (-8.0%), with the most significant decline coming in the area of cell phones.

Translation: David Silberstein