Brazil industrial output posts surprise August drop as economy slows
EWZ•Brazilian industrial output fell 0.6% in August from July, missing economists’ expectations for a 0.1% increase. Output also fell 1.2% year over year, against a forecast increase of 0.4%.
1. Output falls broadly
Production fell across all four main groups surveyed, with consumer goods down 1.5% and the largest drag. The decline was the weakest August performance since 2022.
2. Economist cites demand
Pantheon Macroeconomics chief Latin America economist Andres Abadia said the breadth of the decline pointed to weakening domestic industrial demand rather than volatility in a handful of sectors. Brazil’s central bank last month made its fifth consecutive 25-basis-point rate cut, bringing its rate to 13.75%, and left its next steps open.
