Brazilian industrial production slid 1.3 percent in July, far below the 0.7-percent drop expected by markets, according to data provided by national statistics bureau IBGE.
Figures for June were also reviewed downward, leading to an accumulated 1.5-percent loss for that month. The result puts Brazilian industry 2.1 percent below pre-pandemic levels. Experts blame the contraction on increasing costs caused by the disruption of production chains and families’ loss of purchasing power.
The data is yet another indicator of the slowdown in the Brazilian economy, following the GDP contraction registered in Q2. Per data released on September 1, the industry had already shrunk 0.2 percent last quarter.
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