Brazil’s industrial output falls less than expected in May By Reuters

SAO PAULO (Reuters) – Industrial production in Brazil fell 0.9% in May from April, government statistics agency IBGE said on Wednesday, below the 1.7% decline estimated by analysts polled by Reuters.

Still, Brazilian factories posted their second-consecutive month-on-month drop, down a cumulative 1.7% in the period.

Production in May retreated 1.0% from a year earlier , also better than the 1.7% fall expected by analysts, but well below the 8.4% annual rise in April.

According to IBGE survey manager Andre Macedo, Brazil’s industrial output was impacted in May by historic rains and floods in the country’s southernmost state of Rio Grande do Sul.

Industrial production in Brazil now stands 1.4% below pre-pandemic levels. It is down 17.8% when compared to its May 2011 record high, according to IBGE.

The largest factors dragging down output in May were from the automotive sector, which fell 11.7% from April, and food products, which were down 4.0%.