Brazil: Industrial production rebounds in June
August 1, 2012
In June, industrial production rose a seasonally adjusted 0.2% over the previous month. The increase contrasted the 1.0% decrease observed in May (previously reported: -0.9% month-on-month) but was below market expectations of a 0.8% increase. In annual terms, industrial output fell for a tenth consecutive month and contracted 5.5% in June (May: -4.4% year-on-year), the sharpest decline seen in almost three years. 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 durable goods, followed by capital goods. As a result of the annual contraction in June, the trend continues to point downwards, with annual average growth in industrial production falling from minus 1.8% in May to minus 2.3%. The poor performance of Brazil's industry remains a cause for concern, despite a weaker real as well as a series of stimulus measures implemented in recent months to boost industrial output.