Brazil: Industrial production contracts in May
July 2, 2019
Industrial production fell 0.2% month-on-month in seasonally-adjusted terms in May, contrasting April’s 0.3% increase but overshooting market expectations of a 0.4% drop.
The downturn was driven by plunging production of consumer goods. Among sectors, industrial output fell in 18 of the 26 surveyed, including a sharp drop in output of motor vehicles and trailers.
On an annual basis, industrial production rose 7.2% in May, contrasting April’s 3.9% contraction. The result is partly due to a favorable base effect as May 2019 has one more working day than the same month of last year. Annual average variation in industrial production came in flat in May, up from April’s minus 1.2%.