Brazil: Industrial production decelerates in May
July 4, 2017
In May, industrial production rose 0.8% from the previous month in seasonally-adjusted terms, which was below April’s revised 1.1% increase (previously reported: +0.6% month-on-month). The result overshot market expectations of a 0.6% increase and marked a second consecutive month of growth as manufacturers gradually recover from Brazil’s deep recession.
Behind the deceleration was slower growth of intermediated goods which expanded a meagre 0.3% month-on-month. Meanwhile, production of capital and consumer goods picked up steam.
In annual terms, industrial production rebounded, growing a healthy 4.0% (April: -4.2% year-on-year)—the best result since February 2014. 18 of the 26 categories that the Brazilian Institute of Geography and Statistics (IBGE) surveyed recorded expansions, with the largest increase seen in the production of motor vehicles and trailers. In addition, the trend improved notably and the annual average variation in industrial production rose to minus 2.2% from 3.1%.