Brazil Industrial Production Stalls for 2nd Month

The industrial production in Brazil stalled for a second month in November of 2025, missing expectations of a 0.2% increase to reflect a third consecutive period without gain in industrial output. Output contracted for the extractive industries (-2.6%) amid drops for crude oil, natural gas, and iron ore. Output also fell for autos (-1.6%), chemicals (-1.2%), and food (-0.5%). These were offset by higher production of metal (2.7%), machinery and equipment (2%), non-metal mineral products (3%), and pharmaceutical products (9.8%). From the previous year, industrial production fell by 1.2%, the sharpest contraction in five months.

Brazil’s industrial production rose 0.1% from the previous month in October 2025, rebounding from a 0.4% drop in September but missing expectations of a 0.4% gain. The extractive sector grew 3.6%, while manufacturing fell 0.6%. Mining and quarrying led the positive contributions with a 3.6% increase, ending two months of declines. Other gains came from food products (0.9%), motor vehicles (2.0%), chemicals (1.3%), computer and electronic goods (4.1%), and apparel (3.8%). The sharpest declines were in coke, petroleum products, and biofuels (–3.9%) and in pharmaceuticals (–10.8%). Year-on-year, output fell 0.5%.

Brazil’s industrial production fell 0.4% month-over-month in September 2025, less than market expectations of a 0.5% drop and after a downwardly revised 0.7% rise in August. Output in extractive industries declined 1.6%, while manufacturing was flat. Production fell sharply for pharmaceuticals (-9.7%) and motor vehicles (-3.5%), but increased for food (1.9%), tobacco (19.5%), and wood products (5.5%). By category, durable consumer goods recorded the largest decline (-1.4%), followed by intermediate goods (-0.4%) and consumer goods (-0.1%). On the other hand, capital goods edged up 0.1%. Year-on-year, industrial production grew 2.0%, following a revised 0.7% rise in August.