Brazil Industry March 2017

Brazil

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.

The analysts surveyed by FocusEconomics for this month’s LatinFocus Consensus Forecast see industrial production growing 1.3% in 2017, which is up 0.1 percentage points from last month's estimate. In 2018, industrial output is expected to grow 3.4%.


Author: Angela Bouzanis, Senior Economist

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Brazil Industry March 2017

Note: Month-on-month changes of seasonally adjusted industrial production and annual average growth rate in %.
Source: Brazil Institute of Geography and Statistics (IBGE) and FocusEconomics calculations.


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