Brazil: Industrial production falls for third consecutive month in May
July 3, 2012
In May, industrial production declined a seasonally adjusted 0.9% over the previous month. The fall followed on the 0.4% decrease observed in April (previously reported: -0.2% month-on-month) and exceeded market expectations of a 0.6% decline. Compared to the same period of 2011, industrial output fell for a ninth consecutive month and contracted 4.3% in May (April: -3.5% year-on-year), the sharpest decline in almost three years. Of the 27 categories surveyed by the Brazilian Institute of Geography and Statistics (IBGE), 14 categories registered a decrease in output. The largest fall was observed in consumer goods, followed by capital goods. The trend continues to point downwards, with annual average growth in industrial production falling from minus 1.2% in April to minus 1.8% in May. Poor performance of Brazil's industry remains a cause for concern, despite weaker real as well as a series of stimulus measures implemented in recent months to boost industrial output.