Industrial production down 0.2% in July, says IBGE

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Brazilian industrial production fell by 0.2% in July compared to the immediately previous month, after growing by 12.9% in June, the Brazilian Institute of Geography and Statistics (IBGE) released on Tuesday (4). The decline was driven by the decline in the production of capital goods such as trucks and machinery. In comparison with July 2017, however, the industry grew 4% in July 2018. The result came better than expected. Reuters' research expectations with economists were down 1% on a monthly basis and up 2% year-on-year.
Year-to-date, the industry rose 2.5%, continuing the gradual recovery path, pressured by the weakness of investments and uncertainties for the sector in the middle of the electoral race. "There was a rhythm gain accumulated in the last 12 months, from 3.1% in June to 3.2% in July 2018," the IBGE said in a statement. Despite traction gains from June to July, the accumulated 12-month high is still lower than in April, when it reached 3.9%.
The IBGE revised the data for May, from 13.1% to 12.9%. Production from May to April, when the sector was heavily affected by the truckers' strike, was revised from a fall of 11% to a fall of 10.9%. The May result, which had shown stability in the comparison with February was revised to a 0.1% drop.

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