Brazil industrial output posts surprise fall in April, third decline as pandemic bites

BRASILIA: Industrial production in Brazil fell in April for a third consecutive month, figures showed on Wednesday, a surprise drop that suggests the second wave of the COVID-19 pandemic has had a deeper impact on activity than originally thought.

Statistics agency IBGE said output declined 1.3% from the previous month, compared with the median estimate in a Reuters poll of economists for a 0.1% rise. March's figure was revised to a 2.2% fall from a 2.4% decline.

These figures mean Brazilian industrial production is 1% below the pre-pandemic levels of February last year, IBGE said.

"With the resurgence of the pandemic and the effects that brings, the industrial sector has shown a clear decline in production," said IBGE survey manager Andre Macedo.

"This is clear not only from the negative results, but also from the greater spread of this rate of decline," he added.

IBGE said 18 of the 26 sectors surveyed saw a decline in production on the month, including a 9.5% fall in petroleum derivatives and biofuels output.

Two of the four major categories, semi-manufactured goods and consumer goods, saw output fall in April, by 0.8% and 0.9%, respectively, IBGE said.

Compared to April last year, however, overall production jumped 34.7% due to base effects, the biggest year-on-year rise on record, IBGE said.

January-April production was up 10.5% from a year earlier, and output in the 12 months through April was 1% higher than the same period a year earlier, IBGE said.

Brazil's industrial sector, however, is still 17.6% smaller than its peak in May 2011.