Industrial Costs: Decline for the 5th Time, But Still 25% Above Pre-Pandemic Levels

Written by Paulo Nogueira

Published on 31/01/2024 at 12:41

Be the first to react!

The Quarterly Index Fell 2.3% Due to a Decrease in Production and Capital Costs, Including Electricity, Fuel Oil, and Labor.

The industrial costs experienced a significant variation in the third quarter of 2023, according to the latest survey released by the National Confederation of Industry (CNI). There was a 2.3% decrease compared to the previous quarter, but costs remain at a high level, being 25.3% above pre-pandemic levels.

This reduction in industry costs is positive news for the sector; however, it is also important to pay attention to expenses and spending that directly influence the financial results of companies.

Production Costs Fall Due to Reduction in Intermediate Good Costs

According to the CNI’s economic team, the quarterly decline of 2.7% in production costs is a positive signal for the industry. However, even with this reduction, the index is still 41.5% higher than before the Covid-19 pandemic. All three components of production costs showed declines, with a highlight on the cost of intermediate goods, which fell by 3.4% and significantly contributed to the quarterly result. Despite this, the cost is still 47% higher than before the pandemic.

ARTICLE CONTINUES BELOW

Decline in Capital Costs Occurs for the Second Consecutive Quarter

The released data shows that, after seven consecutive quarters of increase, there was a second consecutive decrease in the capital cost index, totaling 2.1%. According to CNI’s analysis, this decrease is related to the reduction in the basic interest rate, which saw two cuts of 0.5 percentage points during that quarter. Despite the decline, capital expenses still increased by 44.8% compared to the pre-pandemic period.

Tax Cost of Industry Is the Only Index That Shows Increase

The tax cost rose by 0.7% when comparing the third to the second quarter of 2023. This index is measured by the sum of federal and state taxes paid by the industry divided by the industrial GDP.

While federal taxes increased by 6.2%, state taxes rose by 7.2% during the period. The current values of industrial GDP also saw an increase of 6.1% in the quarter. Despite this increase, the tax cost is still at a lower level than at the beginning of 2022, but higher than what was observed before the pandemic.

Source: Portal da Indústria

0 Comments

most recent

older Most voted

Industrial Costs: Decline for the 5th Time, But Still 25% Above Pre-Pandemic Levels

The Quarterly Index Fell 2.3% Due to a Decrease in Production and Capital Costs, Including Electricity, Fuel Oil, and Labor.

Production Costs Fall Due to Reduction in Intermediate Good Costs

Decline in Capital Costs Occurs for the Second Consecutive Quarter

Tax Cost of Industry Is the Only Index That Shows Increase

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

Brazil will harvest a record crop of up to 357 million tons of grains, but it does not have the capacity to store a large part of it. The storage deficit has reached the highest level in history and is equivalent to almost the entire production of Argentina.

Four times faster than the Concorde, capable of taking passengers from New York to London in less than an hour at Mach 5.5, and with an engine that switches from turbojet to ramjet mid-flight at Mach 3.5, the Hermeus Quarterhorse went from paper to its first flight in just 19 months.

Under nearly 2 kilometers of ice in Antarctica, scientists have discovered an ancient landscape sculpted by rivers up to 60 million years ago, the size of Wales, preserved as a time capsule that could help predict the advance of ice towards the ocean.

She started by collecting oyster shells from restaurants and today she has already accumulated more than 10 tons to restore reefs, recover coastal habitats, and demonstrate how a common waste can become a tool for ocean conservation.

SpaceX will dock a $843 million vehicle to the International Space Station to push a nearly 420-ton laboratory against the atmosphere and make the debris fall in a controlled manner into the ocean.

For the economist José Kobori, the USA gained a trump card to “blackmail” Brazil and undermine China’s influence by classifying the PCC and Comando Vermelho as terrorists, increasing the power to pressure companies, banks, and even Pix.

BYD Atto 2 DM-i flex prepares to debut in Brazil with a plug-in hybrid engine, national assembly in Camaçari, competitive pricing, and targets Creta and T-Cross in a battle that promises to heat up the compact SUV market.

Processors can become 1,000 times faster with a new device that uses light pulses, operates in 40 picoseconds, and reduces the heat that stalls data centers.

Noise in the sky frightened residents: NASA confirms that a meteor exploded over New England with a force equivalent to 230 tons of TNT

The paycheck that seemed impossible: São José employee receives R$ 7.94 after legal strike, while deductions by the City Hall affect over a thousand employees and become a target of inquiry in the City Council.

Industrial Costs: Decline for the 5th Time, But Still 25% Above Pre-Pandemic Levels

The Quarterly Index Fell 2.3% Due to a Decrease in Production and Capital Costs, Including Electricity, Fuel Oil, and Labor.

Production Costs Fall Due to Reduction in Intermediate Good Costs

Decline in Capital Costs Occurs for the Second Consecutive Quarter

Tax Cost of Industry Is the Only Index That Shows Increase

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

Brazil will harvest a record crop of up to 357 million tons of grains, but it does not have the capacity to store a large part of it. The storage deficit has reached the highest level in history and is equivalent to almost the entire production of Argentina.

Four times faster than the Concorde, capable of taking passengers from New York to London in less than an hour at Mach 5.5, and with an engine that switches from turbojet to ramjet mid-flight at Mach 3.5, the Hermeus Quarterhorse went from paper to its first flight in just 19 months.

Under nearly 2 kilometers of ice in Antarctica, scientists have discovered an ancient landscape sculpted by rivers up to 60 million years ago, the size of Wales, preserved as a time capsule that could help predict the advance of ice towards the ocean.

She started by collecting oyster shells from restaurants and today she has already accumulated more than 10 tons to restore reefs, recover coastal habitats, and demonstrate how a common waste can become a tool for ocean conservation.

SpaceX will dock a $843 million vehicle to the International Space Station to push a nearly 420-ton laboratory against the atmosphere and make the debris fall in a controlled manner into the ocean.

Instead of demolishing old coal warehouses, London doubled their roofs until they met in the center and created one of the most curious renovations in King’s Cross.

Fungi transform engineered wood that is impossible to recycle into low-carbon insulation panels, reduce construction waste, save energy, and create a sustainable alternative for walls, floors, and roofs.

Bottle caps and pine sawdust replace discarded wood in concrete molds, reduce waste, reuse household residues, and create sustainable solutions in Brazilian construction projects.

While common slabs require expensive traditional concrete and constant maintenance, tests show that fibers from discarded carpets reduce life cycle costs and divert tons of textile waste from landfills.

Tons of beer bagasse left over from production are transformed into lightweight construction panels with corn starch, can replace traditional plant materials, and reduce industrial waste in cities.

For the economist José Kobori, the USA gained a trump card to “blackmail” Brazil and undermine China’s influence by classifying the PCC and Comando Vermelho as terrorists, increasing the power to pressure companies, banks, and even Pix.

BYD Atto 2 DM-i flex prepares to debut in Brazil with a plug-in hybrid engine, national assembly in Camaçari, competitive pricing, and targets Creta and T-Cross in a battle that promises to heat up the compact SUV market.

Processors can become 1,000 times faster with a new device that uses light pulses, operates in 40 picoseconds, and reduces the heat that stalls data centers.

Noise in the sky frightened residents: NASA confirms that a meteor exploded over New England with a force equivalent to 230 tons of TNT

The paycheck that seemed impossible: São José employee receives R$ 7.94 after legal strike, while deductions by the City Hall affect over a thousand employees and become a target of inquiry in the City Council.