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.
Author: Hanna Andersson, Economist