Brazil: Industrial production declines for the first time in four months
November 1, 2012
In September, industrial production fell a seasonally adjusted 1.0% over the previous month. The decline contrasted the 1.7% increase observed in August and was more than the 0.5% decrease expected by the market. In fact, the reading represented the first monthly decline in industrial output since May. In annual terms, industrial output fell for a thirteenth consecutive month and contracted 3.8% in September (August: -1.9% year-on-year). Of the 27 categories surveyed by the Brazilian Institute of Geography and Statistics (IBGE), 16 of them registered a decrease in output. The largest decrease was observed in durable goods, followed by intermediate goods. As a result of the annual contraction in September, the trend continues to point downwards, with annual average growth in industrial production falling from minus 2.9% in August to minus 3.1%.