State production contraction in November is the sharpest since june 2023, reports IBGE
01/15/2025
Industrial production in São Paulo declined by 4.7% in November compared to October, marking the most significant monthly drop since June 2023 (-5.4%). This downturn follows an accumulated gain of 3.4% over two consecutive months of growth, according to data from the Regional Monthly Industrial Survey (PIM Regional) by the Brazilian Institute of Geography and Statistics (IBGE).
São Paulo was one of nine locations out of 15 surveyed by IBGE that saw a reduction in industrial production in November. It was also the primary negative influence on the overall result, which fell by 0.6%.
According to IBGE, São Paulo’s results are linked to sectors such as oil products, food, motor vehicles, and chemical products. “These sectors were the main drivers of the state’s industrial dynamics,” says the survey analyst, Bernardo Almeida.
In comparison to November 2023, São Paulo’s industry shrank by 2.7%, while the national average increased by 1.7%. This was the first annual downturn, compared to the same month the previous year, since March 2024.
For the 12 months leading up to November, São Paulo’s industrial sector grew by 3%, matching the overall pace of Brazilian industry. From January to November 2024, São Paulo’s industry rose by 3.4%, slightly above the 3.2% growth of Brazilian industry.
With November’s performance, São Paulo’s industrial production level is 1.3% below its pre-pandemic level in February 2020, while Brazilian industry as a whole is 1.8% above that level.
A report from the Institute for Industrial Development Studies (Iedi) highlights the “industrial slowdown” in São Paulo. “The released data shows that São Paulo, which has the largest and most diverse industrial park in the country, was among the poorest performers.”
Among the nine locations with a drop in production from October to November, Espírito Santo experienced the most significant decline (-7.2%). This marks the second consecutive month of decline, with a cumulative loss of 8.4%, driven by the extractive and metallurgy sectors.
On the positive side, the highlights include increases in Pará (4.4%), Amazonas (2.7%), and Pernambuco (2.6%). In Pará’s industry, this is the second consecutive increase, with a cumulative gain of 12.8%. According to IBGE, this movement is primarily explained by the non-metallic mineral products sector.
* By Lucianne Carneiro — Rio de Janeiro
Source: Valor International