The July outcome exceeded our expectations (Patria forecast: +2.5%). The figure, released today, was influenced by a lower base (industrial production dropped 6.1% in July 1999) and due to July 2000 having had one less working day than July 1999.
Labor productivity increased 7.8% y-to-y while real wages decreased 0.5% y-to-y in July. Competitiveness thus further improved.
Industrial production increased 5.0% in the first seven months of 2000 and we expect growth at the same level for full-year 2000.