Brazil: Industrial output drops at sharpest rate in nearly a year in March
May 5, 2021
Industrial production decreased 2.4% month-on-month in seasonally-adjusted terms in March (February: -1.0% mom), marking the worst reading since April 2020. The figure largely came on the back of a faster decline in capital goods output, while intermediate goods production expanded at a weaker rate. Lastly, both durable and non-durable consumer goods production dropped at a sharper rate than in February.
On an annual basis, industrial production rose at a quicker rate of 10.5% in March (February: +0.3% yoy), the best result since June 2010. That said, the result was partly flattered by a low base effect. Accordingly, the trend improved notably, with the annual average variation of industrial production coming in at minus 2.9%, up from February's minus 4.1% reading.
Author: Hanna Andersson, Economist