Brazil
News

Brazil's production of IT, electronics and optical equipment takes a hit

Bnamericas Published: Friday, January 06, 2023
Brazil's production of IT, electronics and optical equipment takes a hit

Hit by macroeconomic, supply and logistics woes, the production of IT, electronics and optical equipment fell the most in November among all categories analyzed by Brazil’s statistics bureau IBGE.

Overall industrial production fell 0.1% in November compared to the previous month, IBGE reported.

Of the 26 lines of products reviewed by the agency, 11 reported drops – with IT, electronics and optical equipment tumbling 6.5%. The monthly rather than annual comparison is stressed by IBGE when reporting industrial production.

Inflation, high interest rates, delays in components affecting production, greater indebtedness of families and companies, as well as lower demand for products after the boom in electronics and IT devices during the pandemic, help explain the decline in the segment.

In 2021, sales of computers, among other electronic consumer goods, increased above average due to remote work and distance learning.

“For this reason, the performance of 2022 was less expressive, as there was an anticipation of purchases,” Humberto Barbato, president of the Brazilian electrical-electronics trade group Abinee, said recently in a press conference in São Paulo.

In the annual comparison, Brazil's overall industrial output grew 0.9% in November, the fourth consecutive increase. Year-to-November, production declined 0.6% and, in the accumulated 12 months, the drop was of 1%.

The Brazilian electrical-electronics industry projects nominal growth of 5% in sales in 2023 to around 231bn reais (US$43.7bn). In real terms, sales are set to be flat, Abinee said.

It also projects a 1% increase in electrical-electronics industrial production this year. In its latest survey in November, 60% of its members who responded said they expect their sales to grow this year, Abinee reported in a release.

However, just 45% of those responding said their sales/orders had grown compared to November 2021, down from 62% in the September survey and 56% in October.

There was also an increase in those reporting lower sales/orders, to 35% in November from 25% in September.

SEMICONDUCTORS

Specifically in the case of semiconductors, 60% of Abinee's members who use these components in their production lines reported in November difficulties in acquiring the items on the market – one percentage point below the previous survey.

Abinee also said 33% of companies expect supplies to return to normal in the second half of 2023 or the first months of 2024.

Subscribe to the most trusted business intelligence platform in Latin America. Let us show you our solutions for Suppliers, Contractors, Operators, Government, Legal, Financial and Insurance.

Subscribe to Latin America’s most trusted business intelligence platform.

Other projects in: ICT (Brazil)

Get critical information about thousands of ICT projects in Latin America: what stages they're in, capex, related companies, contacts and more.

Other companies in: ICT (Brazil)

Get critical information about thousands of ICT companies in Latin America: their projects, contacts, shareholders, related news and more.

  • Company: Honeywell do Brasil, Ltda.  (Honeywell Brasil)
  • Honeywell do Brasil, Ltda. is the local branch of US firm Honeywell International Inc. The Sao Paulo-based firm has 13 facilities in the country which include three manufacturin...
  • Company: Greatek Brasil
  • The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
  • Company: Argus Media Brasil
  • The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
  • Company: Seja Digital EAD  (Seja Digital)
  • The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...