Brazil: Industrial output declines sharply in April
May 31, 2011
In April, industrial production contracted a seasonally adjusted 2.1% over the previous month, contrasting a 1.1% expansion in March. The reading came as a surprise to market analysts, who had anticipated a modest 0.2% increase, and represented the largest decline in output since December 2008. Compared with the same period last year, industrial production fell 1.3% (March: -1.4% year-on-year). Of the 27 categories surveyed by the Brazil Institute of Geography and Statistics (IBGE), 13 categories posted a reduction in output levels. The most significant decline was observed in the production of machinery, where output fell a seasonally adjusted 5.4% over the previous month. The production of capital goods contracted 2.9%, which suggests that investment may have slackened at the outset of the second quarter. As a result of April's weak performance, the trend continued to deteriorate, with annual average growth in industrial production decreasing from 6.9% in March to 5.4% in April.