Brazil: Industrial production declines for third straight month in October
December 2, 2011
In October, industrial production fell a seasonally adjusted 0.6% over the previous month, which was less than the 1.9% decrease in September (previously reported: -2.0% month-on-month). Nevertheless, the decline exceeded market expectations, which had industrial production contracting only 0.2%. Compared with the same period last year, industrial output contracted 2.2% in October, which was larger than the 1.6% decrease in September. Of the 27 categories surveyed by the Brazilian Institute of Geography and Statistics (IBGE), 20 categories registered a decline in output. The largest drop was observed in capital goods (-1.8% mom), followed by consumer goods (-1.6% mom). The trend continues to point downwards, with annual average growth in industrial production falling from 1.6% in September to 1.3% in October.