Brazil: Industrial production records worst contraction in nearly 10 years
July 3, 2018
Industrial production plunged in May, dropping at the fastest pace since December 2008. Industrial output fell 10.9% month-on-month in seasonally-adjusted terms, contrasting April’s modest 0.8% increase. The print, however, surprised to the upside coming in above market expectations of a 13.8% decline. A nationwide strike by the truckers’ union, Abcam, over diesel price hikes in May caused widespread disruptions throughout the country, paralyzing key economic sectors and driving a broad-based decline in the index.
In annual terms, industrial production fell 6.7% in May, contrasting April’s 8.9% increase. Annual average growth also dropped, coming at 3.0% in May, below April’s 4.0%.