Brazil's industrial output up 1.4% in January

Industrial production in Brazil grew 1.4% in January 2017 compared to January 2016, but slipped 0.1% from December 2016. The data was released by the Brazilian Institute of Geography and Statistics (IBGE) in Rio today (March 8).

The cumulative 12-month result was -5.4%, but the declines have been milder since June's -9.7%.

Output has increased in half of the 24 industries covered by IBGE's report. The automotive, trailer, and truck body industry has seen a 10.7% drop in January from December after two consecutive months going up. Also down in January after increases in December were IT, electronic, and optical devices (-12.5%) and machinery and equipment (-4,9%).

Conversely, the IBGE reported significant increases for the overall output rate in coke, petroleum products and biofuels (up 4%), and in pharmachemicals and pharmaceuticals (21.6%). The two sectors had seen declines in previous months.

Output increases were also reported for food products (1.2%), beverages (5.5%), and extractive industries (1.1%).

Industrial sectors

The sectoral breakdown reveals that the two-month upward trend has shifted down again when it comes to capital goods used for production. Compared to December 2016, there was a 4.1% decline in that sector.

Durable consumer goods saw a sharper drop than December's -3.8%, shrinking 7.3% in January. Semi-durable and non-durable consumer goods had a 3.1% larger output in January, whereas intermediate goods rose 0.7%. Both had been going up for at least two months.

Translated by Mayra Borges