Brazil Industrial production unchanged in June, up 12% vs. Year earlier

By Jeffrey T. Lewis

SÃO PAULO – Brazil’s industrial production was unchanged in June from the previous month, as supply shortages slowed some production and high unemployment dampened many consumers’ appetites for spending.

Production rose 12% in June compared to the same month in 2020, the Brazilian Institute of Geography and Statistics, or IBGE said on Tuesday. In May, production increased 1.4% during the month and 24% from the previous year.

Production figures still show a recovery from a year ago, when production was slammed by the closure of businesses due to the coronavirus pandemic. Production had already started to improve in June of last year, and year-over-year increases have declined accordingly.

The Brazilian economy continues to show signs of recovery as vaccination programs progress and the number of new infections and deaths from Covid-19 declines, but with an unemployment rate of 14.6%, buyers always work with less money to spend.

A series of factors hamper the growth of production, such as “the difficulty of obtaining raw materials and the increase in production costs.” On the demand side, that is to say if we consider the economy as a whole, the unemployment rate, which has consequences on wages, “said André Macedo, director of production reports. at IBGE.

Production of motor vehicles fell 3.8% in June from May, while production of fabricated metal products fell 2.9% and furniture production fell 5.2%. The production of biofuels and petroleum products rose 4.1%, and the production of machinery and equipment rose 2.9%, the IBGE said.

Write to Jeffrey T. Lewis at [email protected]

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