In its biggest expansion since 2004, Brazil's industrial output grew 6% last year, its biggest expansion since 2004, the state statistical agency said Feb. 8. The expansion was largely thanks to domestic demand, sustained by a rise in credit, employment and salaries, the Brazilian Geographical and Statistics Institute said.
Investment in capital and the purchases of durable goods led the surge, which was underpinned by good performances in the vehicle, machinery and equipment sectors. Output in the tobacco and wood industries, in contrast, fell.
"Domestic demand is being stimulated by credit, the stability of the job market, with increased employment and real salary growth pushing along domestic consumption," the institute's coordinator, Silvio Sales said. He said that figures into January showed no sign of the expansion slowing, "and company surveys are optimistic" for 2008.
Copyright Agence France-Presse, 2008