Industry in Brazil Falls Over 7 Percent from January to November

By Jay Forte, Contributing Reporter

RIO DE JANEIRO, BRAZIL – The Brazilian Industrial Production saw an accumulated reduction of 7.1 percent in the eleven months of 2016. The data is part of the Monthly Industrial Survey – Brazilian Physical Production (PIM-PF), released today (January 5th) by the Brazilian Institute of Geography And Statistics (IBGE).

Compared to the same month of the previous year (2015), the total of the industry showed a decrease of 1.1 percent in November 2016.

However, last November domestic industrial production grew 0.2 percent compared to October, a month in which the industry also closed down 1.2 percent.

The indicator accumulated in the last twelve months also reduced the rate of decline when closing with a drop of 7.5 percent, against the 8.4 percent relative to October.

The 0.2 percent growth in Brazilian industrial production from October to November this year reflects expansions in the manufacturing plant in 13 of the 24 branches of activity surveyed by IBGE, highlighting the 6.1 percent growth registered by motor vehicles.

The IBGE highlighted the positive contributions of extractive industries, with growth of 1.5 percent; Computer equipment, electronic and optical products (6.6 percent); Machinery and equipment (2.4 percent); Manufacture of articles of clothing and accessories (4.4 percent) non-metallic mineral products (2.2 percent); and rubber and plastic products (2.2 percent).

Among the eleven branches that reduced production this month, the most important performance was marked by coke, petroleum products and biofuels, down 3.3 percent.

Significant negative impacts were observed in the perfumery, soap, cleaning products and personal hygiene products (-1.8 percent), machinery, electrical appliances and materials (-3.1 percent), other transport equipment (-5.7 percent), food products (-0.3 percent) and metal products (-1.6 percent).