Brazil: Industrial output drops sharply in February
April 2, 2013
In February, industrial production fell 2.5% over the previous month on a seasonally adjusted basis. The result contrasted the 2.6% increase observed in January (previously reported: +2.5% month-on-month) and overshot the 2.0% decline expected by the market. In fact, the reading represented the steepest decline seen in more than four years. In annual terms, industrial output fell 3.2% in February, which contrasted the 5.5% increase tallied in January.
15 out of the 27 categories surveyed by the Brazilian Institute of Geography and Statistics (IBGE) registered a decline in output. The largest fall was observed in durable goods. On the other hand, capital goods increased in February.
Despite the annual decrease in February, annual average growth in industrial production inched up from minus 1.9% in January to minus 1.8%. LatinFocus Consensus Forecast participants see industrial production expanding 3.5% in 2013, which is down 0.2 percentage points from last month's estimate. In 2014, industrial output is expected to rise 3.6%.