Brazil's industrial output falls 2.5%

The 2.5% drop in Brazil's industrial production from January to February this year reflects the reduction faced by the industrial parks in 11 out of the 14 places surveyed by the Brazilian Institute of Geography and Statistics (IBGE), which released today (Apr. 7) the Monthly Survey of Industry – Regional Physical Production.

The data indicate that, in the time series, and taking seasonal changes into consideration, the most significant declines were registered in Bahia, where the contraction stood at 7.9%, and Amazonas, which faced a 4.7% plunge.

In São Paulo, home to the country's largest industrial complex, the reduction in February from January reported at 2.1%.

One more day

Compared with February 2015, the fall was observed at 9.8% and reflects negative figures in 12 of the 15 places surveyed, even though February this year had one more day. In this comparison, the most considerable contractions were seen in Pernambuco, with 26.2%, followed by Amazonas and Espírito Santo, with 25% and 18.8%, respectively.

Regarding Pernambuco, IBGE attributes the decline to the lower production of food products (refined cane sugar and crystal sugar, ice cream and popsicles). In Amazonas, most noteworthy were computer equipment, electronic and optical devices, and transport equipment (motorcycles and parts). As for Espírito Santo, the negative outcome was driven by the mining industry (ore).

Industry up to date

The updated rate—the indicator covering the previous 12-month period—plunged 9% in February 2016 for all of the country's industry, compared with the 12 months preceding it. The result is a reflection of reductions assailing industrial parks in 13 of the 15 places surveyed.

The 9% decline in the 12-month rate was the sharpest since the 9.4% from November 2009, and maintains the downward trajectory started in March 2014 (2.1%).

Translated by Fabrício Ferreira