The Ipea Monthly Indicator of Gross Fixed Capital Formation (GFCF), released yesterday (1st) by the Institute of Applied Economic Research (Ipea), showed growth of 3.1% in November compared to October 2020, registering the fifth consecutive increase in investments. In comparison with November 2019, there was an increase of 3.6%.

In the 12-month period ended in November, the fall was 4.4%. In the mobile quarter ended in the same month, there was growth of 6.3%. The indicator measures investments in increasing the productive capacity of the economy and in restoring the depreciation of the fixed capital stock.

GFCF is composed of machinery and equipment, civil construction and other fixed assets. According to Ipea, the production of machinery and equipment for the domestic market increased by 10.9% in November, while imports of these items grew 20.1% in the same period. As a result, consumption of machinery and equipment increased 7.7% in the penultimate month of 2020, ending the mobile quarter with an increase of 14%.

According to the survey, the civil construction indicator registered stability in November. “With this result, which followed a small accommodation in October, the segment expanded by 1.6% in the mobile quarter. In comparison with November 2019, the machinery and equipment component stood out with an increase of 9%, while the other fixed assets component increased 2.8% and civil construction fell by 0.5% ”, informed the institute.