Brazil: Industrial production shrinks in March
May 5, 2017
In March, industrial production plunged 1.8% from the previous month in seasonally-adjusted terms, which was worse than February’s revised flat growth (previously reported: +0.1% month-on-month). The result marked the largest contraction in seven months and was worse than market expectations of a more moderate 1.0% decrease. Broad-based declines were seen across the index, with production of consumer goods dropping at the sharpest pace in over a year.
In annual terms, industrial production returned to growth and increased 1.1% (February: -0.7% year-on-year). 16 of the 26 categories that the Brazilian Institute of Geography and Statistics (IBGE) surveyed recorded expansions as green shoots emerge in the battered economy. The largest increase was seen in production of motor vehicles, trailers and bodies. Annual average variation in industrial production improved from minus 4.6% in February to minus 3.6% in March.