Brazil Industrial Output Extends Growth Streak

Brazil’s industrial production rose 0.1% in March 2026 from February, marking a third consecutive monthly gain. Growth was driven by coke, refined petroleum products and biofuels (+2.2%), chemicals (+4.0%), vehicles (+1.1%), metallurgy (+1.2%), and machinery and equipment (+1.0%). Durable consumer goods increased 1.7%, extending gains over the past three months to 9.9%, while capital goods (+0.6%), intermediate goods (+0.5%), and semi- and non-durable consumer goods (+0.4%) also advanced. On an annual basis, industrial output rose 4.3%, rebounding from a 0.7% decline in February.

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%.