Brazil industrial output down 0.7%

Brazil’s industrial production showed a decline in seven of the 15 locations surveyed in August compared to July. Year on year, the reduction was 0.7 percent, and nine of the 15 locations surveyed saw a decrease. The data can be found in the Monthly Industrial Survey, released today (Oct. 8) by the government’s statistics agency IBGE.

The steepest decline in the month was registered in Pernambuco (-12%), eliminating part of the 6.1 percent growth seen in July and pulling down the national indicator. According to survey analyst Bernardo Almeida, Pernambuco’s performance exerts pressure on perfumery, soaps, cleaning and personal hygiene goods, and other chemical articles.

Conversely, Amazonas grew 7.3 percent, pulled by the performance in beverages and transport equipment, making up for some of July’s 12.2 percent shrinkage.

Pandemic

The pandemic is still taking its toll on the recovery of industry in Brazil, along with expensive raw material and a shortage in supplies, Almeida argued.

“There is also a decline in consumption, with growing inflation, contributing to reducing families’ purchasing power. These factors impact the production chain, affecting decisions of both producers and consumers,” he noted.