Brazil: Industrial production growth accelerates in January
March 7, 2013
In January, industrial production rose 2.5% over the previous month on a seasonally adjusted basis. The result followed the 0.2% increase observed in December (previously reported: 0.0% month-on-month) and overshot the 1.6% expansion expected by the market. In fact, the reading represented the fastest pace of expansion seen in almost three years. In annual terms, industrial output expanded 5.6% in January, which contrasted the 3.5% decline tallied in December.
18 out of the 27 categories surveyed by the Brazilian Institute of Geography and Statistics (IBGE) registered an increase in output. The largest increase was observed in capital goods as well as in durable goods.
As a result of the annual increase in January, annual average growth in industrial production rose from minus 2.6% in December to minus 1.9%. 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%.