Brazil's industrial output down a cumulative 9.8%

After two consecutive months reporting growth (1.4% in March and 0.2% in April), the Brazilian industrial production recorded zero growth in May, compared with April. Data from the Brazilian Monthly Industrial Survey of Physical Production (PIM-PF) were released today (Jul. 1) by the Brazilian Institute of Geography and Statistics (IBGE).

With the result of May, the 2016 cumulative five-month industrial production remained negative, ending the January-May period down 9.8%.

Despite the zero growth in the industrial output from April to May this year, the country's industrial park expanded in 12 of the 24 branches surveyed, highlighting the increase of 4.8% registered by motor vehicles, trailers, and car bodies.

Among the groups that reported a drop in May, compared with April, the IBGE highlighted food products (7%) and raw coke, oil products and biofuels (8.2%).

Cumulative decline

The survey also indicates that the cumulative decline of 9.8% for the first five months of 2016, compared with the same period of 2015, was general, reporting reduced production in four major economic categories, in 23 of 26 branches, in 63 of the 79 groups, and in 75.4% of the 805 products surveyed.

According to André Macedo, IBGE's industry coordination manager, the results of recent months seem better than in 2015, although the sector has not signaled a "trend reversal."

For him, "this positive result and this more intense period of the industrial production do not reverse previous falls. But, although the cumulative result is still negative for the year, the decline situation is less intense and the industrial production will not keep the same downward trajectory as before," he said.

Translated by Amarílis Anchieta