Brazil: Industrial production drops again in June
August 1, 2019
Industrial production fell 0.6% month-on-month in seasonally-adjusted terms in June, which followed May’s revised 0.1% fall (previously reported: -0.2% month-on-month). The result was broadly in line with market expectations.
The deterioration was driven by downturns in the production of capital and intermediate goods, which both contracted in June. Meanwhile, consumer goods output fell at a softer rate than in May. Among sectors, industrial output fell in 17 of the 26 surveyed, with the main negative contributions coming from falling output of food products; machinery and equipment; and motor vehicles and trailers.
On an annual basis, industrial production plummeted 5.9% in June, contrasting May’s 7.5% expansion. The result is partly due to a negative base effect as June 2019 had two less working days then June 2018. Annual average variation in industrial production came in at minus 0.8%, which contrasted May’s flat reading.