Brazil Industrial Production Recovers Slightly

Brazil's industrial production rose 0.9% month-over-month in February 2026, beating forecasts of 0.7% and marking the second consecutive monthly gain. Expansion was broad-based, reaching most surveyed sectors. Motor vehicles, trailers and bodies led gains at 6.8%, followed by coke, petroleum derivatives and biofuels at 2.5%. Other strong performers included machinery and equipment at 6.8%, furniture at 7.2%, beverages at 3.4%, computer and electronic products at 3.1%, textile products at 4.4%, and maintenance and repair services at 3.4%. Extractive industries and food products also advanced at 1.1% and 0.8% respectively. Pharmaceutical and chemical products declined 5.5%, exerting the main downward pressure. Year-over-year, industry fell 0.7%, following a 0.2% advance in January.

Brazil's industrial production rose 1.8% month-over-month in January 2026, the strongest gain since June 2024 and above the 0.7% forecast. Output is 1.8% above pre-pandemic levels from February 2020 but still 15.3% below the May 2011 peak. The expansion covered all four major categories and 19 of 25 sectors. Chemical products rose 6.2%, motor vehicles, trailers, and bodies rose 6.3%, and coke, petroleum derivatives, and biofuels rose 2.0%. Extractive industries rose 1.2%, metallurgy rose 4.1%, machinery, equipment, and electrical materials rose 6.5%, beverages rose 4.1%, metal products rose 2.3%, and computer, electronic, and optical equipment rose 3.3%. Machinery and equipment fell 6.7% for the second consecutive month, exerting the main downward pressure. Among major categories, durable consumer goods rose 6.3%, capital goods rose 2.0%, intermediate goods rose 1.7%, and semi-durable and non-durable consumer goods rose 1.2%.

Brazil’s industrial production fell 1.2% month-on-month in December 2025, marking the steepest decline since July 2024 and missing market expectations of a 0.7% drop. The contraction was broad-based, affecting all four major economic categories and 17 of the 25 sectors surveyed. The largest negative contributions came from motor vehicles (-8.7%), chemicals (-6.2%), and metallurgy (-5.4%). Partially offsetting the decline, output rose in coke, refined petroleum products and biofuels (+5.4%), pharmaceuticals (+6.7%), and extractive industries (+0.9%). Among major categories, capital goods (-8.3%) and durable consumer goods (-4.4%) recorded the sharpest declines. Despite the setback, industrial output remained 0.6% above pre-pandemic levels, though still 16.3% below the 2011 peak. On a year-on-year basis, production increased 0.4%, ending two consecutive months of contraction.