Itaú BBA - Industrial production declines in July

Macro Brazil

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Industrial production declines in July

septiembre 3, 2019

The data continue to suggest a slow pace of recovery in economic activity.


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

• Industrial production declined 0.3% mom/sa in July, below market expectations (+0.5%) and in line with our forecast (-0.3%).

• Manufacturing declined for a third consecutive month, by 0.5%, and reached its lowest level since July 2017, excluding the truckers’ stoppages (May 2018). Mining/extraction advanced 6.0%, recovering from an unfavorable shock in the beginning of the year.  

• There are no signs of recovery in the two components closely related to investment — capital goods and construction inputs.

• The data continue to suggest a slow pace of recovery in economic activity. Our preliminary forecast for 3Q19 GDP is a contraction of 0.2% qoq/sa.
 

Luka Barbosa
Alexandre Gomes da Cunha

Matheus Felipe Fuck

 

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



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