Brazil: Industrial production gathers pace in July
September 4, 2012
In July, industrial production rose a seasonally adjusted 0.3% over the previous month. The increase was above both the 0.2% rise observed in June and market expectations of a flat reading. In annual terms, industrial output fell for an eleventh consecutive month and contracted 2.9% in July (June: -5.6% year-on-year). Of the 27 categories surveyed by the Brazilian Institute of Geography and Statistics (IBGE), 12 of them registered an increase in output. The largest increase was observed in capital goods, followed by intermediate goods. As a result of the annual contraction in July, the trend continues to point downwards, with annual average growth in industrial production falling from minus 2.3% in June to minus 2.6%.