Industrial production evolution index points to decline

2024-02-14 14:44:34

In a recent study published by Portal da Indústria called Industrial Survey Data on the industrial production evolution index was highlighted, referring to December 2023, which reached 42.2 points, signaling, according to the report, a drop compared to November. The publication informs that despite the index being below the 50-point line, indicative of a retraction, it is noteworthy that the decline was smoother than usual for the period, positioning itself 0.4 points above the historical average for the month. It is possible to observe in the report that smaller companies registered a slightly more intense retraction, remaining 0.2 points below their December average.

The released study provided data on employment in the industry. The indicator for the evolution of the number of employees reached 47.9 points, indicating a reduction in industrial employment in December compared to November, as highlighted in the report. the document also notes that, as with production, the drop was milder than the historical average, remaining 1.1 points above the December average.

In addition to data from the industrial production index, the report also showed that Installed Capacity Utilization (UCI) fell 4 percentage points, reaching 67%. According to the document, this value is equal to the average for the months of December in the series, indicating that the level of use of installed capacity is in line with expectations for the period. It is noted in the publication that for companies of different sizes, the indicators are 1 percentage point above their December averages, except for medium-sized companies, which are 1 point below their average.

José Antônio Valente, director of equipment rental franchise company Franquias Trans Obra, states that the Industrial Survey study provides a comprehensive analysis of the industrial scenario in December 2023, highlighting a drop in production and employment, but also revealing a resilient capacity of adaptation. “It is true that this study offers valuable insights to understand the dynamics of the industry and its responses to economic complexities and this is fundamental for decision-making by managers in the industry. It is a fact that deciding on processes, purchasing equipment, hiring employees or even buy a franchise To be included in the market, it depends on many factors that must be analyzed and therefore, published studies are very important”.

The study, which can be read in full via the link published at the beginning of the article, provides data on stocks. The stock level evolution indicator reached 47.9 points, indicating a reduction in December. The report states that the effective inventory in relation to usual reached 49.9 points, the first time in eighteen months that there is no excess inventory. This suggests that stocks are at the level planned by companies for the period. Furthermore, it is possible to observe in the study that the effective installed capacity utilization index in relation to the usual one reached 42.4 points in December, following decreasing 2 points in relation to November. According to the document, despite the drop, the result for the period is 0.4 points above the historical average for December, indicating an effective use of installed capacity above what was expected for the period.

Asked regarding the subject, José Antônio stated that the industry’s performance in December 2023 revealed drops in production and employment, accompanied by adequate use of installed capacity and effective inventory management, aligning in a balanced way with expectations for the period.

“Based on industrial reports, businesspeople ask me regarding opening a franchise or say: ‘I want to open a franchise‘ to have costs previously measured by franchisors. This is seen as an alternative to the risks of volatility in industrial production, the drop in production due to demand, the hiring and firing of employees, and the budget for replacing stocks and raw materials”.

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