Brazil: Industrial production contracts in January
March 8, 2017
In January, industrial production in Brazil fell 0.1% from the previous month in seasonally-adjusted terms, contrasting December’s revised 2.4% increase (previously reported: +2.3% month-on-month). The downturn came in ahead of market expectations of a steeper 0.4% fall. Behind the result was a steep contraction in capital goods production and weaker growth in output of intermediate and consumer goods.
In annual terms, however, industrial production returned to growth, rising at a nearly three-year high of 1.4% (December: -0.1% year-on-year). 16 of the 26 categories that the Brazilian Institute of Geography and Statistics (IBGE) surveyed recorded expansions as green shoots continue emerging in the economy. The largest expansion was seen in the extractive industries category. Annual average variation in industrial production improved from minus 6.5% in December to minus 5.3% in January.