Brazil: Industrial output returns to growth in September
November 1, 2013
In September, industrial production grew 0.7% over the previous month on a seasonally-adjusted basis driven by an increase in capital goods. The result contrasted the flat growth observed in August, but fell short of the 1.2% expansion the market had expected. In annual terms, industrial production expanded 2.0% in September (August: -1.2% year-on-year).
An increase in output was recorded in 13 of the 27 categories surveyed by the Brazilian Institute of Geography and Statistics (IBGE). Automobiles, transportation equipment and chemicals registered the largest expansions. Food and clothing production tallied the largest contractions among the categories where output fell.
In addition, annual average growth in industrial production rose from 0.8% in August to 1.2% in September.
LatinFocus Consensus Forecast participants see industrial production expanding 2.3% in 2013, which is down 0.1 percentage points from last month's estimate. In 2014, industrial output is expected to rise 2.8%, which is down 0.2 percentage points from last month's forecast.
Author: Carl Kelly, Economist