Brazil: Industrial production improves in August
October 2, 2015
In August, industrial production contracted 1.2% over the previous month on a seasonally-adjusted basis, which was an improvement from the revised 1.5% decrease seen in July and overshot market analysts expectation of a 1.6% fall. July’s result had marked the lowest reading in 7 months. The improvement was driven by a gain in the production of intermediate goods and a less pronounced fall in consumer goods production.
In annual terms, industrial production plummeted 9.0% in August, which mirrored July’s result. A decrease in output was recorded in 23 of the 26 categories that the Brazilian Institute of Geography and Statistics (IBGE) surveyed. The biggest negative impact was recorded in the production of motor vehicles and trailers.
Annual average growth in industrial production fell from July’s minus 5.4% to minus 5.7% in August, which marked the lowest level since December 2009. Annual average growth has followed a broadly downward trend since March 2014.