Brazil: ndustrial production continues to decline
November 1, 2011
In September, industrial production declined a seasonally adjusted 2.0% over the previous month, which was below both the 0.1% decrease in August (previously reported: -0.2% month-on-month) and market expectations, which had industrial production contracting 1.2%. Compared with the same period last year, industrial output contracted 1.6% in September, which contrasted the 2.0% increase in August. Of the 27 categories surveyed by the Brazilian Institute of Geography and Statistics (IBGE), 16 categories registered a decline in output. The largest drop was observed in durable goods (-9.0% mom), followed by capital goods (-5.5% mom). The trend continues to point downwards, with annual average growth in industrial production falling from 2.3% in August to 1.6% in September.