Brazil Industrial Output Contracts Less than Forecast

Brazil's industrial production contracted by 0.3% month-over-month in December 2024, marking the third consecutive month of decline but coming in better than market expectations of a 0.5% drop.

Among industrial sectors, the most significant declines were seen in machinery and equipment (-3.0%), rubber and plastic products (-2.5%), metallurgy (-1.5%), miscellaneous products (-5.6%), chemical products (-0.8%), motor vehicles, trailers, and bodies (-0.8%), leather goods, travel goods, and footwear (-3.4%), and non-metallic mineral products (-1.6%).

Conversely, eight sectors recorded growth, with extractive industries (+0.8%) and beverages (+3.2%) making the most notable contributions.

Other gainers included pulp, paper, and paper products (+2.2%), clothing and accessories (+4.0%), pharmaceuticals and pharmaceutical products (+2.9%), and textile products (+2.9%).

Considering the fourth quarter as a whole, industrial production contracted by 0.4%.