Machine and equipment sales maintain stability in October

In October, sales of the Brazilian machinery and equipment industry remained stable compared to the previous month (0%), but grew 1.9% compared to the same month last year, according to today’s (11/26) report by the Brazilian Machinery Builders’ Association (Abimaq).

According to Abimaq, the best sales performance is due to the domestic market. Sales to the foreign market declined, with a negative performance of 11% compared to September and -21.1% compared to the same month last year. Abimaq attributed the result to the slowdown in production activity in several trading partners.

On the other hand, imports grew 31.9% in the monthly comparison and 39.7% in relation to the same month of 2018.

As for jobs, there was a growth of 1.2% last month in the annual comparison and fall of 0.4% compared to September.

“In October, [industry] numbers were good, [they were] even better than expected. Usually October is a month of slowdown in activity,” said Maria Cristina Zanella, manager of Abimaq’s Department of Economics, Statistics, and Competitiveness.

She added that such a sharp slowdown in the international market was not expected and that this would reflect in export data. “Exports in the sector represent about 40%. With a strong fall, of almost 10%, it has greatly compromised our result and, therefore, [previous] expectations were not fulfilled.”

The sector expects to close the year with growth of 1.6%. For next year, the expected growth is around 3.2%.

Source: Agência Brasil

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