The industry manufacturing SME showed a slowdown in June 2023, falling 0.6% compared to the same month last year and 0.9% compared to the previous month. This decline continues trend which began last December, but the industry was still able to close the first half of the year with a growth of 1.2% compared to the same period last year.
Price increases in June were more moderate than in previous months, but SME industries began to notice some deceleration in the orders of production. This is because the purchasing power of personal income has weakened, meaning consumers have less money to spend.
A phenomenon that occurs in some industrial branches is the overaccumulation of input stocks for fear that their shortages will generate extraordinary expenses in addition to logistics costs. This causes not only less financial liquidity, but also a postponement of investments in machinery or repairs, which would make it possible to increase their production capacity and market supply.
These results arise from SME Industrial Production Index (IPIP) that elaborates EAT, with a sample that reached 404 SME industries at the federal level. The best performance in June was once again in “Food and Beverages”, with an annual growth of 5.3% in its production, at constant prices. The worst occurred in “Paper and Impressions”, with a year-on-year drop of 23.3% per year.
Analysis by sectors
Analysis and drinks
Production rose 5.3% annually in June, at real prices, and accumulates an increase of 5.4% in the first half of the year (compared to the same period in 2022). In the monthly comparison, it remained unchanged. The industries worked with 72.9% of their installed capacity, 1.3 points below May (74.2%). Businessmen warned about uncontrolled inflation in products such as sugar, which in some cases were received with increases of more than 100%. Problems were also reported to obtain raw coffee, canned food, flour and plastic containers for packaging.
clothing and textile
An annual growth of 4.6% was registered, at real prices, and adds an increase of 1.3% in the first half of the year (compared to the same period of 2022). Compared to last month, it also had a rise of 4.9%.
Woods and Furniture
Manufacturing increased 3.4% annually in June, at real prices, and accumulates an increase of 2.6% in the first half of 2023 (always compared to the same period last year). In the monthly comparison, it rose 1.9%. The industries performed with 75.3% of their installations, slightly above May (75%).
Metal, machinery, equipment and transport material
Production fell 1.3% annually in June, always at real prices, but it also shows an increase of 0.7% in the first semester (measured against the first semester of 2022). In the monthly comparison, it fell 0.1%.
Chemicals and plastics
Production fell 3.1% annually in June, at real prices, but accumulates a rise of 1.9% in the first half of 2023 (compared to the same period last year). In the monthly contrast, it had a deep retraction of 6.1%.
Paper, cardboard, publishing and printing
Production had an annual decline of 23.3%, at real prices, and 10.1% monthly. In this way, in the first half of the year it accumulates a drop of 13.4% (compared to the same period of 2022). The industries worked in June with 80.5% of their installed capacity, a high level, but 2 points lower than in May.
Source: Ambito
