Brazilian industrial output fell for the third straight month in May despite efforts from government to prop manufacturing through stimulus measures. Industrial production in Brazil fell 0.6% in May from April, and 3.2% from the same month a year ago, and 1.6% in the five months of 2014, government statistics agency IBGE said on Wednesday.
The number represents a further step back for Brazilian industry following April's 0.5% decline, revised downward on Wednesday from a previously reported 0.3% drop, and March's 0.5% fall. It was the first time Brazilian industry retreated for three straight months since late 2011.
Brazilian manufacturing has remained largely unresponsive to a string of more than two dozen government stimulus initiatives launched over the last three years as it struggles with fierce competition from abroad, high tax and labor costs, and poor infrastructure.
The recent industrial downturn has already cost nearly 30,000 manufacturing jobs in May according to government data, while business confidence is at the lowest in five years and high inflation remains a headache.
Capital goods production fell 2.6% in May from April, the third straight monthly decline, while intermediate goods such as textiles and chemicals retreated 0.9%. Durable consumer goods such as furniture and home appliances sank 3.6%.
One bright spot in May's numbers was semi- and non-durable consumer goods such as footwear and food products, which rose 1%.
Industrial production is expected to shrink 0.14% in 2014 with Brazil's economy as a whole growing just 1.1%, according to a weekly central bank poll of about 100 economists.
A private survey on Monday showed Brazil's manufacturing shrank at the fastest pace in 11 months in June.
Of the 24 industrial sectors surveyed by IBGE, 15 shrank in May from April, including petroleum derivatives (down 3.8%), vehicle parts and motors (3.9%), metals (4%) and electronics (5%). On the bright side mining was up 1.4%; food, 1% and tobacco, 1.85%.
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Where are you Brasileiro? Tell us it is not true.Jul 03rd, 2014 - 08:55 am 0
The auto industry actually contracted. It is normal. We have to adapt it to our situation without relying on other countries for the growth of the automobile industry.Jul 03rd, 2014 - 10:28 am 0
I can not see problems in the Brazilian economy. Brazil is building the world's best logistics infrastructure, the pre-salt reached 500,000 barrels of oil.
Two new refineries are coming on stream which will prevent the importation of fuel that will add 25 billion dollars in trade surplus.
Payrolls grow by month and generating more consumption and taxes. Generating cash for the government to continue the excellent work of transforming Brazil.
Honestly, we're so much better than England and other English-speaking or European.
Brazil is a construction site!
The situation isn Brazil is catastrophic, rampant corruption and recession. Brasileiro must be talking about Norway... Pré-sal is a lie, all that the Brazilian government says about Petrobrás cannot be trusted and frankly, the truth is not good! Brazilians are silent, sad and hopeless while the corrupts shout the economy is doing wonderfully well... Dilma together with her gang is already reelected because because the voting machines are already programmed.Jul 03rd, 2014 - 12:18 pm 0