Brazil's industrial output jumps 8.0pc in July, more than expected

BRASILIA: Industrial output in Brazil rose 8.0% in July, figures showed on Thursday, much stronger than economists had expected as the sector continued to pick up after shuddering to a standstill early this year due to strict coronavirus-linked lockdowns.

The figures tie in with other indicators that show industry and manufacturing are recovering far more rapidly than the dominant services sector, although Thursday's report shows industry is still weaker than it was pre-crisis.

The 8.0% monthly rise in output in July was more than the median estimate in a Reuters poll of economists for a rise of 5.7%. The May and June increases were revised up to 8.7% and 9.7%, respectively.

Government statistics agency IBGE said the year-on-year decline was 3.0%, less than the 6.4% fall forecast in a Reuters poll.

Among the 26 sectors surveyed, a record 25 registered an increase in production, notably a 43.9% surge in auto and auto parts output. The sector has grown more than seven-fold in the last three months, but is still a third smaller than it was pre-crisis in February, IBGE said.

Capital goods production rose 15% on the month, durable goods output jumped 42%, and consumer goods rose 9.3%, IBGE said.

Industrial output is still down 9.6% in the first seven months of this year, IBGE said.