Brazil: Industrial production plummets in February
April 1, 2016
In February, industrial production fell 2.5% over the previous month in seasonally-adjusted terms, which contrasted the 0.4% increase recorded in January and marked the lowest reading since December 2013. February’s fall was broadly in line with market analysts’ expectations. The deterioration was driven by steep dives in the production of consumer and intermediate goods. In addition, production of capital goods lost steam.
In annual terms, industrial production fell 9.8%, which was above the 13.6% drop recorded in January. A decrease in output was recorded in 24 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.
Moreover, annual average growth in industrial production was stable at the minus 9.0% recorded in January. Brazil’s economy has sunk into the worst recession in its modern history amid low prices for key exports, high inflation, political turmoil and depressed confidence levels.