Shortage of raw materials affects micro and small-sized industries, reveals CNI survey

CNI points to improvement in the financial situation of micro and small enterprises (Arquivo/ABr)
From Cenarium Magazine (*)

MANAUS – The scarcity and cost of raw materials are affecting less the micro and small industries. This is what the quarterly survey Panorama of Small Industry, released on Monday, 7, by the National Confederation of Industry (CNI).

According to the survey, from July to September, the lack or high cost of raw materials continued to be the main concern in the manufacturing industry, but at a lower intensity than in the previous quarter. In the construction industry, high interest rates became the main obstacle. In the extractive industry, the tax burden was again the biggest problem.

For Paula Verlangeiro, CNI’s Policy and Industry analyst, the cost and difficulty of access to raw materials have not stopped hitting the industry, but the problem was less marked in the third quarter and should recede even more by the end of the year.

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Financial Situation

The survey showed an improvement in the financial situation of micro and small-sized industries. The Financial Situation Index reached 43.7 points in the third quarter, presenting the best result since 2013. According to CNI, the advance can be explained by the increase in the indicators of satisfaction with operating income and ease of access to credit, which continued to grow, even with high interest rates.

The sector’s average Performance Index stood at 49 points, above the historical average for the quarter (45.3 points) and 1.6 points higher than the third quarter last year.

Confidence

The Industrial Business Confidence Index (Icei) for small-sized industries reached 58.7 points in October. The indicator fell in relation to September (61.9 points), but remains above the historical average of 53 points and indicates continued confidence. According to the survey, indexes above 50 points show optimism.

The survey is released quarterly based on a cutout for smaller companies of the numbers from the Industrial Survey, the Construction Industry Survey, and the Industrial Business Confidence Index (Icei). Every month, the surveys listen to around 900 businessmen from small-sized companies.

Among the items considered in the composition of the indexes are production volume, number of employees, use of installed capacity, satisfaction with operating profit and financial situation, ease of access to credit, expectations of changes in demand and intention to invest and hire.

(*) With information from Agência Brasil

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