Industrial output up 0.7% in July

Brazil's industrial output was reported to grow 0.7% from June to July. This is the first increase after five months on the wane, according to the Monthly Survey on Industry, conducted by the Brazilian Institute of Geography and Statistics (“IBGE”), published today (Aug 2).

Comparing July 2014 with the same month last year, however, the industrial production is down 3.5%. Declines were also detected in the year's accumulated rate (-2.8%) and in the 12-month period (-1.2%).

The expansion from June to July was chiefly driven by the growth in durable consumer goods (20.3%),  and machinery and equipment in the productive sector (16.7%).

Twenty out of the 24 sectors surveyed reported higher output rates. The most significant positive figures were seen in IT equipment, electrical and optical devices (44.1%), and vehicles (8.5%).

On the other hand, the 6.3% reduction in food products prevented the country's industry to present a better performance. Coke, oil products and biofuels (with -2.6%) is another sector to contribute negatively with the results.

Translated by Fabrício Ferreira