Brazil: Industrial production rebounds modestly in April
June 4, 2019
Industrial production rose a soft 0.3% month-on-month in seasonally-adjusted terms in April, contrasting March’s revised 1.4% drop (previously reported: -1.3% mom) and undershooting market expectations. The poor result underscores the troubled Brazilian recovery, which has failed to take off hindered partly by a challenging external environment.
The rebound was driven by a pickup in output of capital gods and a turnaround in production of consumer goods. Among sectors, industrial output rose in 20 of the 26 surveyed, however, mining and quarrying production continued to plunge likely partly due to ongoing issues with Vale.
On an annual basis, industrial production dropped 3.9% in April, an improvement from March’s sharp 6.1% contraction. Annual average variation in industrial production came in at minus 1.2% in April down from March’s minus 0.1%.