Brazil: Industrial production rises
August 31, 2011
In July, industrial production increased a seasonally adjusted 0.5% over the previous month, contrasting a 1.2% decrease in June (previously reported: -1.6% month-on-month). The reading was above market expectations, which had industrial production rising a more moderate 0.3%. Compared with the same period last year, industrial output declined 0.3% (June: +1.1% year-on-year). Of the 27 categories surveyed by the Brazilian Institute of Geography and Statistics (IBGE), 14 categories registered increases in output. The largest increase was observed in the production of semi and non-durable goods, which expanded a seasonally adjusted 3.8% over the previous month, followed by a rise in the production of durable goods (+2.9% mom). Consequently, the trend continues to point downwards, with annual average growth in industrial production falling from 3.7% in June to 2.9% in July.