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Brazil Industry February 2018

Brazil: Industrial production rebounds in February

Industrial production rebounded in February, rising a meager 0.2% month-on-month in seasonally-adjusted terms, contrasting the revised 2.2% contraction (previously reported: -2.4% month-on-month) registered in January. The print fell shy of market expectations of a 0.6% rise.

February’s rebound was driven by a turnaround in the production of consumer goods and capital goods. Meanwhile, the production of intermediate goods contracted, albeit at a softer pace than in the previous month.

In annual terms, industrial production growth moderated to 2.8% in February from 5.8% in January. Annual average growth rose to 2.9% in February, up from 2.7% in January. It was the highest print in over six years, illustrating the Brazilian economy’s ongoing recovery.

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