Brazil: Industrial production expands at fastest pace in a year
April 3, 2012
In February, industrial production increased a seasonally adjusted 1.3% over the previous month. The rise contrasted the 1.5% decline observed in January (previously reported: -2.1% month-on-month) and exceeded market expectations of a 0.5% increase. In fact, the print marked the highest monthly increase since February last year. Compared with the same period of 2011, industrial output fell for a sixth consecutive month and contracted 3.9% in February (January: -2.9% year-on-year). Of the 27 categories surveyed by the Brazilian Institute of Geography and Statistics (IBGE), 18 categories registered an increase in output. The largest increase was observed in capital goods, followed by intermediate goods. The trend continues to point downwards, with annual average growth in industrial production falling from minus 0.1% in January to minus 1.0% in February.