Brazil: Industrial activity contracts at sharpest pace in eight months in September

Industrial production slid 0.7% month on month in seasonally-adjusted terms in September (August: -0.7% mom). September's result marked the worst reading since January. The decline largely reflected a contraction in capital goods production. Additionally, durable consumer goods output declined at a sharper rate. However, non-durable consumer goods production fell at a softer pace than in the prior month, and intermediate goods production improved.

On an annual basis, industrial production rose at a more moderate pace of 0.4% in September (August: +2.8% yoy). Still, the trend improved, with the annual average variation of industrial production coming in at minus 2.2% in September, up from August's minus 2.6%.

FocusEconomics LatinFocus Consensus Forecast panelists see industrial production expanding 0.2% in 2022, which is up 0.1 percentage points from last month's estimate. In 2023, industrial output is projected to grow 0.9%.