Brazil: Industrial output tumbles in November
January 8, 2014
In November 2013, industrial production fell 0.2% over the previous month on a seasonally-adjusted basis. The result, which was driven by a decrease in capital goods, was below the 0.6% expansion observed in October, but above market expectations of a 1.1% contraction. In annual terms, industrial production expanded 0.4% in November (October: +1.0% year-on-year).
A decrease in output was recorded in over half of the 27 categories that the Brazilian Institute of Geography and Statistics (IBGE) surveyed. Automobiles, machinery and equipment, as well as metal products, registered the largest contractions. Among the categories in which output increased, pharmaceuticals tallied the largest expansion.
Annual average growth in industrial production, however, inched up slightly from 1.0% in October to 1.1% in November.
LatinFocus Consensus Forecast participants see industrial production expanding 2.6% in 2014, which is down 0.1 percentage points from last month's estimate. In 2015, industrial output is expected to rise 2.6%.
Author: Carl Kelly, Economist