Machinery industry revenue grows 9,9% in August

The Brazilian machinery and equipment industry grew 9,9% in August, but fell 2% compared to the same month of the previous year, totaling R$7,554 billion in total net revenue. The data was released today (24) by the Brazilian Association of Machinery and Equipment Industry (Abimaq), which brings together industries in the sector.

Accumulated growth for the year was just 1,1%. According to the institution, in 2019 the reduction in sales is due to the slowdown in activities in the international market, while in the domestic market machine sales grew 5,9%.

"The good news is that we are growing consumption in the domestic market by 5,9%, but the bad news is that this growth is very small and was also canceled out by the drop in exports", said the executive president of Abimaq, José Velloso.

The sector's trade balance had a negative balance of US$ 1,248 billion in August. Exports fell by 2,6% in relation to the previous month and 15,7% in relation to the same month in 2018. As a result, the accumulated figure for the year worsened again and reached a drop of 5,1%.

Imports grew 23,7% in August compared to July and 59,6% compared to the same month last year.

According to Abimaq, the growth was a reflection of imports of components for power generation and valves, pipes and drilling equipment for the oil and gas exploration sector, especially the acquisition made in the United States of a rig for oil drilling, in value of US$590 million.

Apparent consumption

Apparent consumption recorded strong growth in August compared to July, 26%, and when compared to August 2018 it was 40%.

This performance was mainly due to the acquisition of oil drilling machines, which, if disregarded, generates growth of just 1,2% compared to July and 12,4% compared to August 2018.

Growth Forecast

In Abimaq's view, the data recorded up to the month of August is a reflection of the weak economic activity observed this year and indicates that growth expectations, around 5%, will not be confirmed. The entity revised its expectations and growth should be around 1% in 2019.

"Everyone would like the country to react more quickly, but the country is not standing still, reforms are being carried out, they are being worked on, there are many discussions, there are several agendas in Brazil. The year 2019 will not be the year of take-off, as well It won't be 2020, we need to work on the foundations to make sure we have an economy with growth capacity for the future", said Velloso.

JOBS

The balance released today shows small employment growth, with 0,1% in August and 3,9% compared to the same month last year. Until last month, 8 thousand jobs were created. Currently, the sector employs 308.944 people.