Industrial production in Brazil fell 2.5 percent over a month earlier in July 2019, after an upwardly revised 0.7 percent in June and below market consensus of a 0.3 percent rise. Main declines were recorded in output of other chemical products (-2.6 percent); beverages (-4 percent); food products (-1 percent); informatic equipment and electronic & optical products (-3.3 percent); and machinery & electric material (-2.6 percent). On the other hand, production rose for mining products (6 percent); machinery & equipment (6 percent); pharmaceuticals (6.5 percent); automotive vehicles & trailers (1.5 percent); maintenance, repair and installation of machinery & equipment (8.4 percent); cellulose & paper (2.6 percent); and perfumery & personal care products (6.2 percent). Year-on-year, industrial output went down 2.5 percent, following a 5.9 percent fall and compared with market forecasts of a 1.3 percent decrease. 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 1.50 percent in 2020, according to our econometric models.