Brazil Industry

Brazil

Brazil: August Industrial production steady at July's six-month high

October 2, 2014

In August, industrial production rose 0.7% over the previous month on a seasonally-adjusted basis. The figure matched July’s expansion, which had represented the largest gain in six months. Capital goods recorded flat growth in August, which was down markedly from the 16.7% expansion tallied in July. In addition, consumer goods swung from a 7.1% expansion in July to a 0.8% contraction in August. However, intermediate goods rebounded to a 1.1% rise in August from a 0.3% decrease in the previous month. In annual terms, industrial production fell 5.4% in August (July: -3.7% year-on-year).

An increase in output was recorded in 14 of the 24 categories that the Brazilian Institute of Geography and Statistics (IBGE) surveyed. The biggest gains were recorded in the production of tobacco products as well as rubber and plastic products. Among the categories in which output decreased, pharmaceutical products registered the largest contraction.

Following the fall in annual figures, annual average growth in industrial production deteriorated from minus 1.2% in July to minus 1.7% in August, marking the lowest level since December 2012.

LatinFocus Consensus Forecast participants see industrial production contracting 1.6% in 2014, which is down 0.7 percentage points from last month's estimate. In 2015, industrial output is expected to expand 1.2%.


Author: Angela Bouzanis, Senior Economist

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Brazil Industry August 2014

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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