Slow growth in the Brazilian coatings industry

Brazil. Comparing the good results of 2010, the Brazilian coatings industry reported more modest figures in the first half of 2011. The growth rate and the economy in general decreased drastically, said the Association of Paint Manufacturers of Brazil (Abrafati) at the forum held in August in the city of Sao Paulo.

Abrafati CEO Dilson Ferreira said: "In the first half of this year, sales of residential coatings increased by only 0.5% compared to the same period in 2010. We should see slight growth in this second half that will lead to a 1% increase for the year."

This year's slow growth is due to the current uncertainty and the delicate international situation; consumers are adopting a more conservative attitude and delaying their purchases, as are retailers, who keep stocks longer to postpone the replacement of products.

Among the positive factors that allow maintaining the high level of sales of coatings, is the priority that the Brazilian Government has given to construction as an instrument to promote economic and social development.

The overall growth of the industry should be 1.3%, thus reaching 1,377 million liters, while it is expected that by 2012 there will be an expansion of sales of 4%. The outlook will continue to be positive, taking into account that the domestic market will benefit from the major events that Brazil will receive in the coming years.