Industrial production in Brazil decreased 0.6% month-over-month in June 2019, following a downwardly revised 0.1% drop in the prior month and more than an expected 0.2% fall. Output declined for food products (-2.1%); machinery & equipment (-6.5%); automotive vehicles & trailers (-1.7%); steel products (-1.7%); pharmaceuticals (-3.8%); pulp, paper & paper products (-2.2%); other transport equipment (-6.5%); maintenance, repair and installation of machinery & equipment (-5%); coke, oil products & biofuel (-0.6%) and machinery & electrical apparatus (-2.0%). In contrast, main gains were recorded for mining products (1.4%); wood products (7.5%); beverages (1.5%) and other chemical products (0.5%). Year-on-year, industrial activity tumbled 5.9%, after an upwardly revised 7.4% surge in the previous month and compared to market expectations of a 5.9% decline. In the first six months of the year, industrial output shrank 1.6% over a year ago. Industrial Production Mom in Brazil averaged 0.13 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 0.40 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 0.50 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.