Brazil: Industrial output falls in May
July 2, 2013
In May, industrial production declined 2.0% over the previous month on a seasonally adjusted basis. The result contrasted the 1.9% increase observed in April (previously reported: +1.8% month-on-month) and exceeded market expectations of a 1.1% decrease. In annual terms, industrial production expanded 1.4% in May (April: +8.4% year-on-year).
20 out of the 27 categories surveyed by the Brazilian Institute of Geography and Statistics (IBGE) registered a decrease in output. The largest contraction was observed in capital goods.
Despite the decline in May, annual average growth in industrial production stepped up from minus 0.9% in April to minus 0.5% in May.
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%.