The coup brings the industry back to pre-Lula levels.
The impacts of the 2016 parliamentary coup, orchestrated by Aécio Neves, Eduardo Cunha, FHC, and Michel Temer, were devastating for Brazilian industry, whose capacity utilization fell to levels prior to the first term of former President Luiz Inácio Lula da Silva; the level of capacity utilization in Brazilian industry ended 2016 at 76%, the lowest ever recorded since 2003, reported the CNI this Monday, the 30th; under Lula and Dilma, industry grew continuously, but the fall came in 2015, when Aécio joined Cunha to sabotage the country, and in 2016, when Temer deepened the economic depression.
Mariana Branco, reporter for Agência Brasil - The level of utilization of installed capacity in Brazilian industry ended 2016 at 76%, the lowest ever recorded since 2003. This information comes from the National Confederation of Industry (CNI), which today (30) released industrial indicators relating to December of last year.
"This indicates a large amount of slack in the industry. There is significant idle capacity in the sector, and this is limiting the recovery of investment," stated Flávio Castelo Branco, Executive Manager of Economic Policies at CNI (National Confederation of Industry).
The survey also indicated a reduction in workers' purchasing power at the end of last year. Real wages fell by 1,6%, while the average real income of workers dropped by 1,2% in December compared to November. "Purchasing power is hampered not only by unemployment, but also by inflation," said Castelo Branco.
On the other hand, December recorded positive data regarding employment and hours worked in production. After 23 consecutive months of decline, employment grew 0,2% in December compared to November.
During the same period, hours worked increased by 1%. According to the CNI (National Confederation of Industry), this was the second consecutive increase in hours worked in production. In the last two months of 2016, the indicator accumulated growth of 1,8%.
All data are seasonally adjusted, meaning they take into account inflation and the characteristics of the period analyzed.
According to Flávio Castelo Branco, the employment and hours worked figures may signal "a possible reversal of the negative trend in industrial activity, which has been occurring for two years."
Annual decline
In the year-on-year comparison, industry indicators worsened compared to 2015. Real revenue fell by 12,1% and hours worked by 7,5%. Employment decreased by 7,5% and the real wage bill fell by 8,6%. The average worker's income also declined by 1,2% year-on-year.
According to Castelo Branco, the comparison shows that 2016 was a difficult year for industry. "The magnitude of the drop [in real revenue], in the double digits and on top of drops that have already been large in previous years, shows a significant erosion of companies' revenue."