Brazil: Industrial production expands for second consecutive month in December
February 1, 2017
In December, Brazil's industrial production rose 2.3% from the previous month in seasonally-adjusted terms, improving on November’s revised 0.4% increase (previously reported: +0.2% month-on-month) and recording its strongest growth since June 2013. The result came in ahead of market expectations. Behind the continued upturn was strong growth in the production of durable, semi-durable and non-durable consumer goods, along with intermediate goods.
In annual terms, however, industrial production fell 0.1%, which was an improvement compared to the revised 1.3% decrease (previously reported: -1.1% year-on-year) recorded in November and marked the smallest drop since February 2014. 16 of the 24 categories that the Brazilian Institute of Geography and Statistics (IBGE) surveyed recorded expansions as green shoots continue emerging in the economy. The largest expansion was seen in the motor vehicles and trailers category. Annual average variation in industrial production improved from minus 7.5% in November to minus 6.6% in December.
Author: Christopher Thomas, Economist