Brazil: Industrial production drops for third consecutive month in July
Industrial production fell 0.3% month-on-month in seasonally-adjusted terms in July, which followed June’s revised 0.7% fall (previously reported: -0.6% month-on-month) and marked the third contraction in a row. The result was notably below market expectations which had forecast an expansion.
The fall was driven by declining production of capital and intermediate goods, while consumer goods output rebounded in July. Among sectors, industrial output fell in 11 of the 26 surveyed, with the main negative contributions coming from falling output of beverages, food products, and chemicals.
On an annual basis, industrial production contracted 2.5% in July, a smaller drop than June’s 5.9% decrease. Annual average variation in industrial production came in at minus 1.3%, deteriorating from June’s minus 0.8% and marking the worst reading since June 2017.