Brazil: Industrial production rebounds in February despite mining sector woes
April 3, 2019
Industrial production gained steam in February, jumping 0.7% month-on-month in seasonally-adjusted terms. The result contrasted January’s revised 0.7% decrease (previously reported: -0.8% mom) and marked an eight-month high.
The recovery was driven by a rebound in capital goods production, as well as faster growth in the output of consumer goods. Among sectors, industrial output expanded in 16 of the 26 surveyed, with motor vehicles, trailers and bodies and food products driving February’s result. Notably, the positive reading also came despite a nearly 15% fall in the mining sector due to plunging iron ore output after the Vale dam disaster.
On an annual basis, industrial production rose 2.0% in February, notably contrasting January’s 2.4% contraction. February’s reading, however, benefitted from a positive calendar effect as it had two more working days in it then the same month last year. Annual average growth in industrial production inched up to 0.6% from 0.5% in January.
Brazil Industrial Production Forecast
The analysts surveyed by FocusEconomics for this month’s LatinFocus Consensus Forecast see industrial production growing 2.8% in 2019, which is unchanged from last month's estimate. In 2020, industrial output is expected to grow 3.3%.