The city on the beach in Brazil

Brazil Industrial production February 2021

Brazil: Industrial activity declines for first time in ten months in February

Industrial output dropped 0.7% in month-on-month seasonally-adjusted terms in February, which contrasted January’s 0.4% increase and marked the first decline since April 2020. February’s result surprised market analysts, who had expected a 0.4% expansion.

Looking at the details of the release, capital and consumer goods output swung to contraction. Moreover, durable consumer goods production dropped at a sharper rate compared to the previous month, while non-durable consumer goods production tipped into contraction.

On an annual basis, factory output rose at a more moderate pace of 0.4% in February (January: +2.3% yoy). Meanwhile, the trend improved, with the annual average variation of industrial production coming in at minus 4.1% in February, up from January’s minus 4.2% reading.

Commenting on the outlook, Alberto Ramos, economist at Goldman Sachs, reflected:

“The near term outlook for IP is challenging given the acceleration of inflation, record number of covid cases/fatalities, renewed social distancing and mobility-limiting protocols, and supply chain issues.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest