Brazil: Industrial production decelerates, but delivers positive surprise in April
June 2, 2016
In April, industrial production grew 0.1% over the previous month in seasonally-adjusted terms, which marked a slow-down from the 1.4% increase recorded in March. However, April’s rise was above market analysts’ expectations of a 0.9% contraction. The deceleration was mainly driven by a contraction in the production of consumer goods, which had provided a significant boost in March. In addition, capital goods production growth was more than halved compared to the previous month. The lone bright spot in April was the positive growth recorded for intermediate goods, which had contracted in March.
In annual terms, industrial production fell 7.2%, marking an improvement over the 11.5% drop recorded in March. A decrease in output was recorded in 21 of the 26 categories that the Brazilian Institute of Geography and Statistics (IBGE) surveyed. The biggest negative impacts were recorded in mining and quarrying and the production of motor vehicles, trailers and bodies.
Moreover, annual average variation in industrial production improved marginally from minus 9.7% in March to minus 9.6% in April.
Author: Christopher Mc Innes, Economist