Brazil Industrial Production Retreats

Brazil’s industrial production fell 0.6% in August 2026 from July, reversing the 0.1% increase recorded in the previous month. All four major economic categories and 16 of the 25 industrial sectors surveyed recorded declines. Among the major categories, semi- and non-durable consumer goods (-1.7%) and durable consumer goods (-1.0%) posted the largest declines, followed by capital goods (-0.6%) and intermediate goods (-0.2%). Among activities, the largest negative influences came from tobacco products (-23.4%), pharmaceutical and pharmaceutical chemical products (-5.5%), and extractive industries (-0.7%). Of the nine activities that increased, food products (1.0%) provided the strongest positive influence. Year over year, industrial output fell 1.2%, while production increased 0.8% year to date.

Brazil’s industrial production rose 0.2% month-over-month in July 2026, rebounding after two consecutive months of declines. Three of the four major economic categories and 13 of the 25 industrial sectors surveyed recorded increases. Among the major categories, durable consumer goods rose 3.2% and capital goods increased 2.4%, while semi- and non-durable consumer goods advanced 0.5%. In contrast, intermediate goods fell 0.2%, the only category to decline. Among industries, the strongest positive contributions came from computers, electronic and optical products, which rose 12.2%, food products, up 1.0%, and coke, refined petroleum products and biofuels, up 1.1%. All three ended two consecutive months of declines. Compared with July 2025, industrial production fell 0.5%, ending a four-month streak of growth. Year-to-date, output rose 1.1%.

Brazil's industrial production fell 1.8% month over month in June 2026, marking its second consecutive monthly contraction and compared with forecasts of a 0.8% drop. All four major economic categories and 16 of the 25 industrial sectors surveyed posted declines. The sharpest drops came from coke, refined petroleum products and biofuels (-5.9%), chemicals (-4.3%), food products (-1.9%), pharmaceuticals (-11.0%), apparel and accessories (-11.0%), computers and electronic products (-8.9%), and other transport equipment (-8.6%). Among the major categories, semi- and non-durable consumer goods (-4.1%) and durable consumer goods (-3.2%) recorded the steepest declines, while capital goods and intermediate goods both fell 1.1%. Despite the monthly weakness, industrial production was up 1.5% in the first half of 2026.