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Brazil Industry July 2018

Brazil: Industrial production swings to contraction in July

Industrial production swung to contraction in July, after recording the largest expansion in over a decade in June as the economy returned to normal following a truckers’ strike. Industrial output fell 0.2% month-on-month in seasonally-adjusted terms, contrasting June’s revised 12.9% increase (previously reported: +13.1% month-on-month). The print beat market expectations of a 14.0% increase. The decline was broad-based with production of capital and consumer goods dropping in the month, while output of intermediate goods slowed.

In annual terms, industrial production rose 4.0% in July, accelerating from June’s revised 3.3% increase (previously reported: +3.5% year-on-year). Annual average growth inched up from 3.2% in June to 3.3% in July.

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