Brazil's industrial production in the fourth quarter of 2008 hit decade low, according to a study released on Thursday by the National Industry Confederation (CNI).

The index for the industrial production in the quarter was only 40.8 points, 17 points less than the third quarter of 2008 and 18.2 points lower than the figure for the same period of 2007.

When the index comes under 50 points, it indicates a reduction in the industrial activity.

The fourth quarter's utilization of the industry's installed production capacity also fell to 74 percent from the third quarter's 78 percent.

According to the CNI, the decrease in the country's industrial activity was a consequence of the global financial crisis.

The employment in the sector also saw a drop from 54.4 percent in the third quarter to 44 percent in the fourth quarter, which means that companies not only have stopped hiring new staff but also started dismissing, according to the CNI.

According to CNI's prediction, as most of the businessmen in the industrial sector expected falls in the demand for their products in the first half of 2009, the industrial activity level was likely to witness a larger fall at the beginning of the year.

(Xinhua News Agency January 30, 2009)