In June, industrial production declined a seasonally adjusted 1.6% over the previous month, contrasting a 1.1% increase in May (previously reported: +1.3% month-on-month). The reading was well below market expectations, which had industrial production contracting 0.8%. Compared with the same period last year, industrial output expanded 0.9% (May: +2.7% year-on-year). Of the 27 categories surveyed by the Brazilian Institute of Geography and Statistics (IBGE), 20 categories registered declines in output. The largest decrease was observed in the production of semi and non-durable goods, which contracted a seasonally adjusted 2.4% over the previous month, followed by a decline in the production of capital goods (-1.9% mom). Consequently, the trend continues to point downwards, with annual average growth in industrial production falling from 4.5% in May to 3.7% in June. Weakening industrial production suggests that authorities' efforts to cool the overheating economy are beginning to produce results.
Industrial production drops
August 2, 2011
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Brazil Economic News
October 19, 2016
At its 19 October meeting, the Central Bank’s Monetary Policy Committee (COPOM, Comite de Politica Monetaria) decided to cut the benchmark SELIC interest rate for the first time in four years, lowering it from 14.25% to 14.00%.
October 18, 2016
Retail sales (excluding cars and construction) fell 0.6% in August from the previous month in seasonally-adjusted terms.
October 7, 2016
Consumer prices in September increased 0.08% over the previous month, the lowest rise since July 2014.
October 4, 2016
In August, industrial production plunged 3.8% over the previous month in seasonally-adjusted terms, which significantly contrasted the 0.1% expansion recorded in July and marked the worst result since January 2012.
October 3, 2016
The Markit manufacturing Purchasing Managers’ Index (PMI) rose slightly in September, increasing from August’s 45.7 to 46.0.