Industry Group Reports 20.7% Drop in Machinery Sector’s Net Revenue

The total net revenue of the Brazilian machinery and equipment sector dropped by 20.7% in September compared to August, according to the Brazilian Association of Machinery and Equipment Industry (Abimaq). Compared to September of the previous year, the total net revenue of the industry decreased by 16.5%.

For the accumulated period from January to September, the sector’s revenue fell by 9.5%, and over the past 12 months, there was a decline of 9.6%.

Apparent Consumption

Abimaq reported that the apparent consumption of machinery and equipment manufactured in Brazil in September decreased by 11.2% compared to August. In comparison to September of the previous year, the apparent consumption of machinery and equipment dropped by 19.9%.

From January to September, the apparent consumption of machinery and equipment recorded a 9.4% decline, and in the accumulated 12-month period, there was a 9% decrease.

The apparent consumption of industrial goods is defined as the portion of domestic industrial production intended for the domestic market plus imports.

Nuci

Abimaq also noted that the Capacity Utilization Rate (Nuci) of the Brazilian machinery and equipment industry ended September with a 0.2% decline compared to August.

According to the association, the sector operated for an average of 1.9 shifts in September. The average order backlog in September decreased and reached an average of 9.7 weeks of activity.

The result, according to Abimaq, was driven by a deterioration in orders for machinery for construction, agriculture, and the manufacturing industry.

Exports and Imports

According to Abimaq, Brazilian exports of machinery and equipment fell by 20.7% in September compared to August. However, in comparison to September of the previous year, the exports of machinery and equipment to foreign countries grew by 11.7%.

Over the year, from January to September, exports of machinery and equipment increased by 17.3%. In the 12 months leading up to September, foreign sales of machinery and equipment rose by 15.7%.

Imports, on the other hand, saw a 17.3% decline compared to August and a 6.8% drop in comparison to September 2022. In the year-to-date, imports of machinery and equipment increased by 11.2%, and in the 12-month period, the rise was 12.4%.

The chart below shows exports from the Brazilian machinery sector between Jan 2019 and Sep 2023. The data is from DataLiner.

Brazilian Machinery Industry Exports | Jan 2019 – Sep 2023 | TEU

Source: DataLiner (click here to request a demo)

Employment

The number of workers in the Brazilian machinery and equipment industry fell by 0.5% in September, according to Abimaq. Compared to September 2022, the decline was 2.1%.

Throughout the year, Abimaq reported a net creation of just over 500 jobs.

Among the industry groups, there were hirings in machinery manufacturers for logistics and component construction throughout 2023.

Source: CGN

Click here to read the original news report: https://cgn.inf.br/noticia/1333172/faturamento-liquido-do-setor-de-maquinas-cai-207-em-setembro-ante-agosto-diz-abimaq

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