Brazil industrial production drops 0.7% in August, more than expected

RIO DE JANEIRO, BRAZIL – Brazilian industrial production shrank 0.7% in August, compared to July, according to the Monthly Industrial Survey – Physical Production (PIM-PF), released on Tuesday by the Brazilian Institute of Geography and Statistics (IBGE).

It is the third consecutive monthly drop in the seasonally adjusted series, a period in which it accumulates a loss of 2.3%. In July, the indicator declined 1.2% in the seasonally adjusted series after revised data.

With the August result, the industry is 2.9% below the pre-pandemic level in February 2020 and 19.1% below the record level in May 2011. It was also 6% below December 2020.

The performance was below the median estimate of 28 financial institutions and consultants heard by Valor Data, of a drop of 0.4% free of seasonal effects. The projections ranged from a fall of 1.2% to a rise of 1.0%.

Compared to August 2020, industrial production also fell 0.7%. By this basis of comparison, the median expectation of the market was that the indicator would fall by 0.1%, according to the Valor Data survey.

The accumulated industrial production in 12 months was 7.2%. In the accumulated result in 2021, until August, industry h as advanced 9.2%.

The August result confirms the industry’s behavior throughout 2021, suffering from both supply and demand restrictions.

Of the eight months through 2021, the report points out, there were negative rates in six and the predominance of retracting industry sectors in seven.

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