Brazil: Industrial output increases in June
August 1, 2013
In June, industrial production grew 1.9% over the previous month on a seasonally adjusted basis. The result contrasted the 1.8% decrease observed in May (previously reported: -2.0% month-on-month) and exceeded market expectations of a 1.3% increase. In annual terms, industrial production expanded 3.1% in June (May: +1.4% year-on-year).
22 out of the 27 categories surveyed by the Brazilian Institute of Geography and Statistics (IBGE) registered an increase in output. Capital goods recorded the largest expansion.
In addition to the monthly increase in June, annual average growth in industrial production rebounded from minus 0.4% in May to 0.3% in June.
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