Brazil: Industrial production drops in April
June 5, 2014
In April, industrial production fell 0.3% over the previous month on a seasonally-adjusted basis, which was a softer contraction than the 0.5% decrease tallied in March. Capital goods continued to contract in April, although at a markedly more moderate pace. However, intermediate goods and consumer goods accelerated their contraction in April. In annual terms, industrial production plummeted 5.8% in April (March: -0.7% year-on-year), which was the sharpest contraction since February 2012.
A decrease in output was recorded in 12 of the 24 categories that the Brazilian Institute of Geography and Statistics (IBGE) surveyed. Metallurgy and non-metallic mineral products registered the largest contractions. Among the categories in which output increased, food products tallied the most significant expansion.
Following the sharp drop in annual figures, annual average growth in industrial production deteriorated sharply from 2.1% in March to 0.8% in April, marking the lowest level since April last year.