Industry and Trade suffered greatest impact of truck drivers’ strike in Brazil

A survey by FGV’s Brazilian Institute of Economics (IBRE) pointed out that the sectors most affected by the strike were Trade (90.5%) and Industry (89.5%), followed by Services (66%) and Construction (64%).
经济学
20 七月 2018
Industry and Trade suffered greatest impact of truck drivers’ strike in Brazil

The effects of the 11-day truck drivers’ strike in late May are still being felt. A survey by FGV’s Brazilian Institute of Economics (IBRE) pointed out that the sectors most affected by the strike were Trade (90.5%) and Industry (89.5%), followed by Services (66%) and Construction (64%). The special survey poll interviewed executives and consumers, who informed whether they were affected and revealed their expectations for the future.

Analyzing each sector, the machinery and equipment, motor vehicles, trailers and vehicle bodies, and other transportation equipment segment (100%), in the Industry sector, felt the greatest impact. In Trade, the vehicles, motorcycles and parts segment (94.1%) was the most impacted. This sector’s negative highlights were transport services (90.4%) and household services (82.5%). In Construction, the segment of special artworks and other types of works (84.1%) took the greatest hit.

According to the IBRE’s survey coordinator, Viviane Seda, the strike affected the economy as a whole, but the long-term effects should be perceived more significantly by the Industry. “It was the most affected sector in June, with mentions from 59% of companies. It also had the highest ratio of executives who mentioned the strike as a factor that negatively affected their prospects for the next six months”, said the economist.

Consumers were also harmed

Most consumers (approximately 52%) stated they were negatively affected. Almost 40% said they were not affected or did not know how to respond; 8.6% saw the strike as a positive event. The highest family income level (above BRL 9,600 per month) was the most impacted (59.2%).

Uncertainty may reduce consumption and investments

Executives and consumers were also less optimistic about the economy in the coming months. According to the survey, the consumers’ main reason is the lack of confidence in the government (77%), followed by political uncertainties (64%) and the sluggish economy (47%). In addition, 42% of respondents mentioned difficulties in finding a job. Among executives, the most negative factors are the sluggish economy (62%), political uncertainties (57%) and the lack of confidence in the government (48%).

“The strike raised the level of uncertainty even more. Considering that the economic agents are averse to risks, consumers tend to postpone purchases and businesses postpone investments. All of the factors that were negatively influencing confidence took a turn for the worse”, said Seda.

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