Brazil’s machinery and equipment sales climb 11.2% in September

Brazil’s machinery and equipment industry grew in September, with net sales revenue rising 11.2% year-on-year to reach R$27.2 billion, according to data released Wednesday by the manufacturers’ association Abimaq.

Exports increased 1.8% compared to the same month in 2024, while year-to-date results remained in line with last year. The main destinations for Brazilian machinery exports shifted this year: sales to North America fell 8.9%, while shipments to Europe and South America rose 4.8% and 18.5%, respectively. Argentina stood out with a 44.3% increase in imports of Brazilian machinery, driven by the agriculture and construction sectors.

Exports to the United States dropped 10% in September compared with the previous month. For the year, the cumulative decline reached 8.2%, driven by the U.S. government’s jump in import tariffs on Brazilian products.

“The impact of the tariff hike is still very recent,” said Abimaq’s head of economics and statistics, Leonardo Gatto, during a press conference. He noted that companies in the sector do not plan to cut investments. “They will wait to see what happens in the coming months, but we don’t expect major impacts by year-end.”

Abimaq had initially projected a 15% overall decline in exports this year, assuming that shipments to the U.S. would drop to zero under the tariff regime. “But that hasn’t materialized,” Gatto emphasized. The association now forecasts a smaller 4.2% drop in total exports and a 24.4% decline in exports to the U.S.

The group warned, however, that if Donald Trump’s tariffs “remain in place for long, the impact will be more severe.”

On the eve of the report, the U.S. Senate, led by Republicans, approved legislation overturning the import tariffs imposed on Brazil. The bill now heads to the Republican-controlled House of Representatives, where it is expected to stall. House Republicans have repeatedly blocked legislative efforts to end Trump’s import tariffs.

Abimaq’s data also showed that imports rose both month-on-month (8.1%) and year-on-year (8.4%) in September, totaling US$2.78 billion. For the year to date, imports increased by 9% to US$23.97 billion.

The association said the industry’s order backlog, after falling 1.9% in August, has now stabilized at 8.9 weeks. “However, there was a decline in order books for machinery used in logistics, civil construction, and components for capital goods,” Abimaq added.

Source: MSN

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