The high cost and availability of raw materials are still the main concern by Brazilian industrial entrepreneurs since the beginning of the Covid 19 pandemic.
But according to the local industrial confederation CNI, such preoccupation has declined to its lowest level since the second quarter of 2020, while other problems are emerging, such as the high interest rates.
According to research conducted in the second quarter of 2021, 63 percent of the entrepreneurs pointed high cost and availability of raw materials as their first concern, followed by 9.1 percent that pointed high interest rates. For the research during the second quarter of 2022, the ratios were respectively 52.8 percent and 24.3 percent.
According to CNI, the poll suggests that, in the view of entrepreneurs, the increase of raw materials prices was less intense than in previous quarters, while they are facing increased hurdles to obtain financial loans.
CNI mentioned that in June the industrial production was stable from May, with higher employment rate and level of stocks in line with previous planning, but plans for new investments have shown a small decline, possibly reflecting the problems relative to interest rates.
The level of utilization of the Brazilian industrial production capacity has hovered around 70 percent during May and June, a level considered as healthy, not far from the three-year peak of 74 percent achieved in October 2020.