Brazil Industrial production May 2020

Brazil

Brazil: Industrial output rebounds and notches best reading since June 2018 in May

July 2, 2020

Industrial output grew 7.0% month-on-month in seasonally-adjusted terms in May, which contrasted April's record 18.8% decrease. May's figure marked the best result since June 2018 and largely came on the back of gradual easing of social distancing measures and other Covid-19 induced restrictions to activity. May’s print was largely in line with market expectations.

May’s rebound was broad-based, with intermediate goods, consumer goods and capital goods all swinging markedly from contraction to expansion.

On an annual basis, factory output dove 21.9% in May, a less pronounced contraction than April’s 27.3% fall. Meanwhile, the trend pointed down, with the annual average variation of industrial production coming in at minus 5.4%, down from April's minus 2.9% reading.

FocusEconomics LatinFocus Consensus Forecast panelists see industrial production declining 9.6% in 2020, which is down 3.1 percentage points from last month's estimate. In 2021, industrial output is projected to grow 5.4%.


Author:, Economist

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Brazil Industry May 20 20

Note: Month-on-month changes of seasonally adjusted industrial production and annual average growth rate in %.
Source: Brazil Institute of Geography and Statistics (IBGE) and FocusEconomics calculations


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