Brazil: Industrial output contracts in July
September 3, 2013
In July, industrial production contracted 2.0% over the previous month on a seasonally-adjusted basis. The result contrasted the 2.1% increase observed in June (previously reported: +1.9% month-on-month) and was greater than the 1.4% contraction the market had expected. In annual terms, industrial production expanded 2.0% in July (June: +3.2% year-on-year).
A decrease in output was recorded in 15 of the 27 categories surveyed by the Brazilian Institute of Geography and Statistics (IBGE). Pharmaceuticals and automobiles registered the largest contractions.
In addition to the annual expansion in July, annual average growth in industrial production ticked up from minus 0.3% in June to 0.7% in July.
LatinFocus Consensus Forecast participants see industrial production expanding 2.8% in 2013, which is down 0.1 percentage points from last month's estimate. In 2014, industrial output is expected to rise 3.4%.
Author: Carl Kelly, Economist