Brazil: Industrial production soars in June after truckers’ strike ends
Industrial production returned to growth in June, recording the largest expansion in over a decade. Industrial output soared 13.1% month-on-month in seasonally-adjusted terms, contrasting May’s 11.0% decrease. The print, however, still surprised to the downside coming in below market expectations of a 14.0% increase. All sub-sectors of the index posted strong rebounds as the economy got back on its feet after a nationwide strike by the truckers’ union, Abcam, over diesel price hikes ended at the start of June. The strike had caused widespread disruptions throughout the country, paralyzing key economic sectors.
In annual terms, industrial production rose 3.5% in June, contrasting May’s 6.5% decrease. Annual average growth also improved, coming at 3.3% in June, above May’s 3.0%.