Brazil: Industrial production beats expectations in January
March 2, 2011
In January, industrial production rose a seasonally adjusted 0.2% over the previous month, which contrasted a 0.8% drop tallied in December. The reading surprised market analysts on the upside, who had expected a 0.4% contraction. On an annual basis, industrial output rose 2.5% in January, despite a high comparison base, as activity skyrocketed 16.1% in January 2010. According to the Brazilian Institute of Geography and Statistics (IBGE, Instituto Brasileiro de Geografia e Estatistica), the reading reflected a strong expansion in pharmaceutical and metallurgy output, which was partially offset by a contraction in vehicles production. On a use-based classification, the manufacture of capital and durable goods supported the monthly expansion. As a result of the moderating trend in place since the third quarter of 2010, annual average growth in industrial production decreased from 10.4% in December to 9.4% in January.