Home > Economic Indicators > Brazil's industrial output falls more than expected in July

Brazil's industrial output falls more than expected in July

2024/09/25 12

SAO PAULO (Reuters) – Brazil’s industrial production fell more than expected in July, losing steam after a stellar performance in the previous month, government statistics agency IBGE said on Wednesday.

Industrial production in Latin America’s largest economy fell 1.4% in July from June . Economists polled by Reuters projected a decline of 0.9%.

“Negative industry performance in July comes after intense growth in the previous month,” IBGE survey manager Andre Macedo said. In June, output had increased 4.3% from May, revised data from IBGE showed on Wednesday, breaking a two-month negative streak.

According to Macedo, some important industrial plants also halted their production process in July. The main negative influence came from food products, with production down 3.8% on a monthly basis.

“There was a drop in sugar production, impacted by the effects of a drought in the country’s center-south region, as well as in beef and soy products. These items were the ones that contributed most negatively this month,” Macedo said.

Still, industrial production jumped 6.1% in July from a year earlier , IBGE said, citing “spread positive results” and a low 2023 comparison base. Economists polled by Reuters were expecting an annual increase of 6.3%.

With July’s figures, Brazil’s industrial sector is now 1.4% above pre-pandemic levels but 15.5% below its record high reached in 2011.

About Cryptoopia

Cryptoopia is a global financial website that provides content on stock markets, cryptocurrencies, commodity investments, foreign exchange, and economics. Our motto is “One platform, global access”, meaning that our platform is accessible to everyone around the world. No matter where you are, you can access information and investment opportunities in the global financial markets through our platform. We are committed to providing convenient and comprehensive financial services to global investors, making your investment journey smoother and more accessible.