The FINANCIAL — Brazil’s industrial production contracted for a third straight month in August on sharply lower output from the auto industry, as a likely recession in Latin America’s largest economy deepened.
Industrial production declined 1.2% in August from July in seasonally adjusted terms, the Brazilian Institute of Geography and Statistics, or IBGE, said on October 2, according to Nasdaq.
The figure was better than expected, however. A survey of economists by the local Agência Estado newswire had produced a median estimate of a 1.6% drop.
Weighing on the sector in August was a 9.4% decline in output from the auto industry from July, the IBGE said. Local auto association Anfavea has reported drops in monthly sales of new vehicles, as consumer confidence in Brazil spirals to record lows amid what is expected to be the country’s worst recession in a quarter-century.
But Brazilian manufacturers were suffering long before the wider economy took a turn for the worse this year. August industrial production was down 9% from the year-ago month, in what the IBGE said was an 18th consecutive drop in annual terms.
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