Brazil’s Industrial Production Stable in July, Negative for 2016

By Lise Alves, Senior Contributing Reporter

SÃO PAULO, BRAZIL – The industrial production in Brazil remained virtually stable in July, increasing only 0.1 percent in relation to June, the fifth consecutive increase in production, according to data from the IBGE (Brazilian Statistical Bureau). Although the country’s industrial production registers an accumulated growth of 3.7 percent from March to July, the industry’s overall results for 2016 are still negative, with a retraction of 8.7 percent in the first seven months of the year.

In comparison to July of 2015, the survey shows that the contraction in industry was of 6.6 percent, the 29th consecutive retraction in the year-over-year comparison.

According to the IBGE, the slight increase in the July index was affected by the positive result of consumer durable goods, which grew by 3.3 percent. For the past three months the category has been registering gains, despite the accumulated retraction of 21.4 percent since the beginning of the year.

Major positive contributions came from mining (+1.6 percent), computer equipment, electronic and optical products (+5.8 percent) and metallurgy (+1.6 percent).

Among the main economic categories, the production of capital goods fell by 2.7 percent, with an accumulated loss of 18.5 percent in the seven first months of the year.

The production of semi and non-durable consumption goods fell by 0.5 percent, durable consumption goods decreased by 1.9 percent.

In annual terms (July 2016 to July 2015), the IBGE registered a decline in industrial production of 9.6 percent, the highest decline in this comparison basis since October of 2009.