Itaú BBA - Industrial production declines in September

Macro Brazil

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Industrial production declines in September

November 1, 2018

Widespread decline in September


For the version with all charts and tables, please open the attached pdf file 

Industrial production plummeted 1.8% mom/sa in September, disappointing the median of market expectations and our estimate (-1.0% in both cases) and dragged by widespread weakness among activities and economic categories.

Weak industrial production reflects tighter financial conditions in 3Q18, which were also captured by surveys that show a perception of slower industrial demand. Improving financial conditions since October, employment growth and a rebound in new loans should impact demand and enable a recovery in industrial output going forward.

According to our preliminary estimate, industrial production was stable at the margin in October.

Artur Manoel Passos
Alexandre Gomes da Cunha

 

For the version with all charts and tables, please open the attached pdf file 



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