Brazil Industry January 2017


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.

The analysts surveyed by FocusEconomics for this month’s LatinFocus Consensus Forecast see industrial production growing 1.3% in 2017, which is unchanged from last month's estimate. In 2018, industrial output is expected to grow 3.1%.

Author: Angela Bouzanis, Senior Economist

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Brazil Industry Chart

Brazil Industry January 2017 0

Note: Month-on-month changes of seasonally adjusted industrial production and annual average growth rate in %.
Source: Brazil Institute of Geography and Statistics (IBGE) and FocusEconomics calculations.

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