Industrial Production in Brazil Back to Growth in August, but Pace Still Below 2018
RIO DE JANEIRO, BRAZIL – After three months of decline, national industrial production began to grow: 0.8 percent in August compared to July.
The recovery of almost the entire cumulative loss since May was driven by the mining and quarrying industry, which grew 6.6 percent in the month, thanks to the increase in iron ore, oil and gas extraction.
Despite the increase in August, the industry shows a loss of pace compared to last year, with the cumulative index in 12 months decreasing from -1.3 percent in July to -1.7 percent. Compared to August 2018, the total industry fell 2.3 percent. These results are from the Monthly Survey of Industry, released today by IBGE.
With the fourth consecutive positive month, the mining industry accumulates a 25.2 percent growth from May to August. According to the research manager, André Macedo, after the disaster in Brumadinho in late January, the activity showed production declines for three months.
“Starting in May, some ore plants that had stopped production to implement the adjustments required by environmental laws were back in operation,” he explained.
Petroleum products and biofuels, up 3.6 percent, and food products, up 2 percent, also contributed to the industry’s result in August. The main negative influences came from motor vehicles, which fell 3 percent with the reduction in the exports to Argentina, due to the economic crisis in that country, and the clothing sector, which fell 7.4 percent.
“Of course, August shows growth, but it is very concentrated in one of four major economic categories and in 10 of the 26 surveyed sectors. That is, the expansion is not widespread,” explained André.
Among the major economic categories, intermediate goods were the only positive rate, up 1.4 percent from July. Durable consumer goods had the strongest decline this month, 1.8 percent, after advancing 0.4 percent in July.
The segments of semi- and non-durable consumer goods and capital goods also posted negative results, both of -0.4 percent.
Live Market IntelligenceBrazil — Live Market Board
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Brazil — Live Market Board
+1.85%
171,031.73
+1.85%
65,729.18
+2.14%
11,338.38
+0.89%
2,913,184
+1.35%
2,459.23
+0.61%
58,698.13
+2.60%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 171,031.73 | +1.85% | +21.85% | 167,927.15 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
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