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Brazil Industrial production January 2022

Brazil: Industrial output drops at sharpest rate since April 2020 in January

Industrial production dropped 2.5% month-on-month in seasonally-adjusted terms in January, which contrasted December’s 2.9% increase and marked the steepest drop since April 2020. Looking at the details of the release, January’s downturn was largely driven by a fall in intermediate goods output. Furthermore, production contracted in both the consumer goods, and capital goods sub-sectors, while sales of durable consumer goods and non-durable consumer goods also fell.

On an annual basis, industrial production plunged 7.3% in January (December: -4.9% yoy). Moreover, the trend pointed down, with the annual average growth of industrial production coming in at 3.2% in January, down from December’s 4.2% reading.

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