Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

Brazil industrial output rises in October but near-term outlook remains cloudy

Economic Indicators Dec 02, 2022 08:26AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: An employee carries copper hoses at the Sociedade Paulista de Tubos Flexiveis (SPTF) metallurgical company which manufactures flexible metal hoses, in Sao Paulo April 20, 2012. REUTERS/Nacho Doce/File Photo

SAO PAULO (Reuters) - Industrial production in Brazil rose 0.3% in October from September, government statistics agency IBGE said on Friday, returning to positive territory after two consecutive monthly declines though still below pre-pandemic levels.

The median estimate in a Reuters poll of economists had projected stability from the previous month.

Production in October also grew 1.7% from a year earlier, slightly above market consensus of a 1.6% rise.

Industrial output data in Latin America's largest economy have been volatile this year - after an uptick early in 2022, when it posted four straight monthly gains, the sector has recently faced a slowdown.

IBGE's research manager Andre Macedo stressed in a report that in the last five months there were three drops, with a larger number of industrial activities in negative territory.

Brazil's industrial production, he said, "remains far from paring the losses seen in the recent past," as IBGE noted that it was still 2.1% below pre-pandemic levels (February 2020) and 18.4% below its all-time high (May 2011).

The better-than-expected rise in October, said Capital Economics' chief emerging markets economist William Jackson, "only partly reversed the falls in output in the previous few months.

"And surveys suggest that the sector fared much worse in November. This supports our view that growth will come to a standstill in the coming quarters".

In October, despite the overall rise, only seven of the 26 categories surveyed posted monthly gains, according to IBGE.

Food products and steelmaking were the highlights, while motor vehicle, machinery & equipment, and beverages had the greatest negative impact.

"Overall, the industrial sector as a whole had a decent start to Q4 following a stuttering performance in Q3, but the near-term outlook for the sector as a whole is deteriorating," said Andres Abadia, chief Latin America economist at Pantheon Macroeconomics.

Brazil industrial output rises in October but near-term outlook remains cloudy
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email