Industrial production in Brazil rose 0.7 percent month-over-month in February 2019, rebounding a downwardly revised 0.7 percent fall in the previous month and beating market expectations of a flat reading. Main gains were recorded in production of automotive vehicles & trailers (6.7 percent); food (3.2 percent); coke, petroleum products & biofuels (4.3 percent); machinery & equipment (1.7 percent); beverages (1.1 percent); pharmaceuticals & pharmacy products (1.6 percent); metals (0.6 percent); pulp & paper products (0.9 percent); and transport equipment (2.8 percent). Meanwhile, output decreases were seen in extractive industries (-14.8 percent); clothing & accessories (-4.8 percent); metal products (-2.0 percent); furniture (-4.1 percent); tobacco (-8.5 percent); and computer equipment, electronic & optical products (-1.5 percent). Year-on-year, industrial production advanced 2 percent, after falling 2.4 percent in January and above market consensus of a 2.3 percent decline. Industrial Production Mom in Brazil averaged 0.14 percent from 1985 until 2019, reaching an all time high of 25.10 percent in May of 1990 and a record low of -24.40 percent in April of 1990.
Industrial Production Mom in Brazil is expected to be 0.70 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Industrial Production Mom in Brazil to stand at 0.60 in 12 months time. In the long-term, the Brazil Industrial Production MoM is projected to trend around 1.30 percent in 2020, according to our econometric models.