Machinery imports rise 43% in April, signaling growth

Advances in machinery imports and inputs in April by the manufacturing industry indicate a prospect of growth in this activity in the coming months, according to data from the Foreign Trade Indicator (ICOMEX) of the Brazilian Institute of Economics of the Getulio Vargas Foundation (IBRE / FGV).

The manufacturing industry imported 42.8% more capital goods in April 2021 than in April 2020, but the advance was influenced by oil platforms. Excluding the platforms, there was still a 28.9% growth in machinery and equipment imports by the industry. The industrial activity also increased the purchase of intermediate goods by 31.2%.

The import of durable consumer goods in the country increased by 93.8%.  Imports of semi-durable consumer goods increased by 6.6%, while imports of non-durable consumer goods increased by 17.1%.

The Brazilian industry also exported more in April 2021 than in the same period in 2020. The durable consumer goods export volume increased by 197.3%, driven by the automotive sector, while that of capital goods increased by 81.7%, impacted by aircraft sales.

Exports of semi-durable consumer goods grew by 134.4%, exports of non-durable goods increased by 20.4%, and exports of intermediate goods increased by 25.5%.

In April, the increase in vehicle exports and imports is due to “the intra-industrial trade that characterizes this sector and exchanges within South America, especially with Argentina”, justified FGV, in an official note.

“Of the 23 sectors listed, the variation in imports surpassed that of exports in 11 sectors. Decisions to export and import are not only based on exchange rates. In addition, the imported inputs also affect the profitability of exports”, stressed FGV.

In April, the Brazilian trade balance registered a surplus of US$ 10.3 billion. The exported volume grew 23.3% over April 2020, while the imported volume increased by 28.8%.

Source: Terra

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