Brazil: Industrial production contracts
October 4, 2011
In August, industrial production declined a seasonally adjusted 0.2% over the previous month, contrasting a 0.3% increase in July (previously reported: +0.5% month-on-month). The reading was slightly worse than market expectations, which had industrial production contracting by just 0.1%. Compared with the same period last year, industrial output increased 1.8% (July: -0.7% year-on-year). Of the 27 categories surveyed by the Brazilian Institute of Geography and Statistics (IBGE), 11 categories registered a decline in output. The largest drop was observed in durable goods (-2.9% mom), followed by a contraction in semi and non-durable goods (-0.9% mom). The trend continues to point downwards, with annual average growth in industrial production falling from 2.9% in July to 2.3% in August.