Brazil's industrial output increased 1.1% in 2018, the Brazilian Institute of Geography and Statistics (IBGE) announced. According to IBGE, though the annual figures were positive, the industrial sector grew at a slower pace than it registered in 2017, when production increased 2.5%.
In December, industrial output in Brazil was up 0.2% compared to that of November, but fell 3.6% compared to that of the same period in 2017.
Industrial production in Brazil rose 0.2 percent month-over-month in December 2018, rebounding from a downwardly revised 0.1 percent in the previous month and in line with market expectations.
It was the first gain in industrial output since June, as production increased for food (1.5%); extractive industries (1.3%), beverages (2.9%), miscellaneous products (6.9%) and coke, petroleum products & bio-fuels (0.6%).
Meanwhile, output declined for automotive vehicles & trailers (-3.1%); machinery & equipment (-2.5%); other chemicals (-1.3%); metallurgy (-1.3%); pulp & paper products (-1.8%); rubber & plastic (-1.6%); tobacco products (-11.6%) and furniture (-4.7%).
Year-on-year, industrial production fell 3.6%, after declining 1.0 percent in the prior month and compared with market consensus of a 4.2% decrease. Considering twelve months of 2018, industrial output went up 1.1%. Industrial Production Mom in Brazil.
However according to IBGE during 2018, capital goods was up 7.4%, while production of intermediate goods was up 0.4%, and production of durable goods was up 7.6%. Only output of non-durable consumption goods was down 0.3% last year. As for the different sectors of industry, 13 out of the 26 monitored by IBGE registered a production hike.
The most significant positive impact was that of the automotive sector, whose production rose 12.6% in 2018, metallurgy, 4%, pharmaceutical products 6.1%, machinery 3.4%, and oil byproducts, 1%.
The most significant negative impact in the general indicator was the food sector, with output falling 5.1%, and the clothing sector and footwear 3.3% and 2.3%.