04/09/2024 – 9:14
Brazilian industrial production fell 1.4% in July compared to the previous month, the Brazilian Institute of Geography and Statistics (IBGE) reported on Wednesday. The loss of pace comes after a 4.3% increase in June.
Compared to the same month of the previous year, production increased by 6.1%.
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Expectations in a Reuters poll of economists were for a 0.9% monthly drop and a 6.3% annual rise.
Even with the decline in July, the industrial sector registered growth of 3.2% in the first seven months of 2024. In the accumulated 12 months, the advance was 2.2% in July, intensifying the growth rate compared to the results of June (1.5%) and May 2024 (1.2%).
“With these results, the industry is 1.4% above the pre-pandemic level (February 2020) and 15.5% below the highest point in the historical series, obtained in May 2011”, highlighted the IBGE.
Biggest falls
From June to July, two of the four major economic categories and only seven of the 25 industrial sectors surveyed saw a decline in production. The main negative influences came from food products (-3.8%), coke, petroleum products and biofuels (-3.9%), extractive industries (-2.4%) and pulp, paper and paper products (-3.2%).
“Much of the decline recorded this month is related to the significant advance seen in the previous month, but it is also observed that important industrial plants carried out shutdowns in their production process. The result for July is characterized by having few industrial activities, but with relative importance in the industrial structure, which showed a drop in production above the industry average. Despite this, when we compare the level of the industry in July of this year with December 2023, the industrial sector is 1.2% higher, showing the continuation of an upward trajectory”, assessed André Macedo, manager of PIM Brasil.
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