BRAZILIANINDUSTRY IN

FIGURESDecember/2019

yy

Main industrial indicators

1. Industry performance (short-term indicators)

Source: Ministry of EconomyNote: Classification by type of commodity (aggregate factor) based on the Common Nomenclature of Mercosur (NCM)

VariableOct19/Sep19

(%) seasonally adjusted

Oct19/Oct18 (%)

Accumulated rate in the last 12 months; until October (%)

Physical Production₁ 0.8 1.0 -1.3

Real Sales₂ 1.3 3.5 -1.3

Employment₂ 0.0 -0.3 -0.2

Source: IBGE and CNI1 Mining and quarrying and Manufacturing; 2 Manufacturing

Variable Oct/19 Sep/19 Oct/18

Capacity utilization1

Seasonally adjusted, average percentage 78.0% 77.9% 77.5%

Actual-usual capacity utilization2,3 Index 46.4 42.9 45.9

Actual-planned inventories2,4

Index 51.1 51.4 50.8

Source: CNI 1 Manufacturing; 2 Mining and quarrying and Manufacturing; 3 The indicator varies in the 0-100 interval. Figures under 50 points indicate idleness of industrial facilities; 4 The indicator varies in the 0-100 interval. Figures above 50 points indicate that actual inventory is above planned levels.

Variable Value Nov/19

Value Oct/19

Accumulated value in the last 12 months;

until November

Exports of manufactured products US Dollar (Millions), F.O.B 6,271 6,193 78,400

Imports of manufactured products US Dollar (Millions), F.O.B 12,185 15,031 151,735

Manufactured products trade balance US Dollar (Millions), F.O.B 5,914 8,838 73,335

Source: CNINote: 1 Mining and quarrying, Manufacturing and Construction; 2 The indicator varies in the 0-100 interval. Figures above 50 points indicate that entrepreneurs are confident.

Industrial physical production - Monthly variation Growth rate compared to the immediately previous month (%) - seasonally adjusted

Source: IBGENote: Mining and quarrying and Manufacturing

Business Confidence Index

30

35

40

45

50

55

60

65

70

Apr/13 Oct/13 Apr/14 Oct/14 Apr/15 Oct/15 Apr/16 Oct/16 Apr/17 Oct/17 Apr/18 Oct/18 Apr/19 Oct/19

63.2(Nov/18)

55.4(Apr/13)

62.5(Nov/19)

0.6 0.80.6

12.6

1.20.3 0.30.2

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

Jun/18 Aug/18 Oct/18 Dec/18 Feb/19 Apr/19 Jun/19 Aug/19 Oct/19

0.0 0.0

-1.1-2.4

-0.1 -0.5 -1.3 -0.6 -0.2

Source: IBGE

Sectoral physical production - Monthly variation - Manufacturing October compared to September (%) - seasonally adjusted

Wood products

Leather and footwear

-5.6

-3.4

-3.2

-2.1

-1.9

-1.5

-1.3

-0.6

-0.6

0.0

0.0

0.3

0.8

1.4

1.6

1.8

2.4

3.4

4.7

4.9

8.5

11.2

15.3

Furniture

Wearing apparel

Basic metals

Coke, refined petroleum products and biofuel

Cleaning and perfumes preparations

Textiles

Computers, electronics and opticals products

Rubber and plastic products

Motor vehicles, trailers and semi-trailers

Metal products

MANUFACTURING

Machinery and equipment

Beverages

Non-metallic mineral products

Pulp and Paper

Food

Other transport equipment

Electrical equipment

Tobacco

Pharmaceutical chemicals and pharmaceuticals

Printing and reproduction

1.11.6 1.6

2.7 2.7

3.84.2

3.9 3.9

-0.1 -0.1

-1.4-1.1

1.1

2.0

-0.8 -0.8

0.8

II III IV I II I IIIII IV

2017 2018 2019Costs Prices

Source: CNI and FGVNote: 1 Manufacturing; 2 Seasonally adjusted.

GDP and its components

Source: IBGE1 Public Utility Industrial Services. It refers to electricity, gas, water supply, sewerage and other related services.

Industrial prices and costs - Quarterly variationGrowth rate compared to the immediately previous quarter (%)

Components

Growth rate compared to the immediate previous quarter - seasonally adjusted (%) Growth rate on the last 4

quarters, until 2019-III2019-I 2019-II 2019-III

GDP 0.0 0.5 0.6 1.0

Industry -0.4 0.7 0.8 0.0

Manufacturing -0.1 1.8 -1.0 -0.5

Mining and quarrying -6.1 -3.1 12.0 -0.9 SIUP₁ 0.9 -1.1 -0.9 3.4

Construction 0.0 2.4 1.3 0.4

Agriculture 1.8 -0.5 1.3 2.0

Services 0.3 0.2 0.4 1.1

20

25

30

35

40

45

50

1947

1949

1951

1953

1955

1957

1959

1961

1963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

2017

Evolution of industry’s share in GDP - 1947-2018 (%)

Source: IBGE

2. Industry Profile

ActivityGDP Employment Total payroll

2008 2018 2008 2018 2008 2018

INDUSTRY 27.3 21.2 24.1 20.2 24.8 19.6

Mining and quarrying 3.8 2.9 0.5 0.5 1.4 1.0

Manufacturing 16.5 11.4 17.5 14.5 17.4 13.8

SIUP1 2.6 3.0 1.0 1.0 1.8 1.6

Construction 4.4 3.9 5.0 4.2 4.2 3.3

2.1 The importance of industry in Brazil

Source: IBGE and RAIS/Ministry of Economy.1 Public Utility Industrial Services. It refers to electricity, gas, water supply, sewerage and other related services.

Share in GDP, employment and total payroll

27.3(2008)

21.2(2018)

Source: IBGENote: Mining and quarrying, Manufacturing, Construction and Public Utility Industrial Services.

40

50

60

70

80

90

100

110

120

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

40.0%

45.0%

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

97.2(2008)

108.7(2018)

Evolution of labor productivity - Manufacturing - 1992-2018(output/hours worked) - (Index, 2010 = 100)

2.2 Labor productivity

Source: CNI

Average annual growthLast decade

2008-2018 1.1%2008-2013 0.8%2013-2018 1.4%

Share¹ of industry in total exports of goods and services - 2008 to 2018 (%)

Source: CNI, based on Funcex and Central Bank of Brazil dataNote: 1 Since June/2019 edition, Industry goods and services exports are considered based on sector of production (CNAE 2.0) instead of kind of commodity (aggregate factor, based on NCM). Industry exports correspond to Mining and quarrying, Manufacturing and Construction exports.

77.0(2008)

68.7(2015)

70.8(2018)

Food19%

Coke, refined petroleum products

and biofuel11%

Chemicals9%

Motor vehicles, trailers and semi-

trailers7%

Basic metals6%

Other sectors49%

Coke, refined petroleum products and biofuel

15%

Motor vehicles, trailers and

semi-trailers10%

Food10%

Basic metals10%Chemicals

8%

Other sectors47%

CountriesGDP Employment Exports of goods and services1

2008 2018 2008 2018 2008 2018

Argentina 26.3 23.1 24.0 22.4 68.9 64.4

Brazil 27.3 21.2 24.1 20.2 77.0 70.8

China 47.0 40.7 26.9 28.6 91.7 90.9

South Korea 32.7 35.1 25.5 25.0 84.8 87.8

United States 21.0 18.6 21.5 19.4 64.5 61.5

India 31.1 27.0 21.0 24.7 57.5 56.6

Mexico 34.8 31.2 25.6 26.0 91.3 90.4

Russian Federation 30.8 32.1 29.0 26.9 88.8 84.3

2.4 International Comparison - Brazil and selected countriesIndustry’s share in GDP, employment and goods and services exports (%)

Source: IBGE

2.3 Sectoral dynamicShare in manufacturing’s value of industrial transformation: five main sectors

2007 2017

English version of “Indústria em Números, Dezembro 2019”. Monthly publication of the National Confederation of Industry - CNI Research and Competitiveness Unit - GPCEconomic Policy Unit - PEC www.cni.com.br

Source: The World Bank, IBGE, Ministry of Economy, OECD, Central Bank of Brazil, Funcex and Bureau of Economic AnalysisNote: 1 The sources for exports of goods are OECD and Funcex. For the exports of services are Central Bank of Brazil and UNCTADstat.