Brazil’s industrial output fell for the second straight quarter

After slipping by 0.45% q/q in Q1, Brazil’s Industrial Production Index (IPI) fell further by 2.5% q/q in Q2, seasonally adjusted, amid a shortage of industrial inputs and a struggling domestic demand.

The manufacturing output fell by 3.8% q/q in Q2, but the production of the extractive sector grew by 4.8% q/q, mitigating the effect on the overall index. On a yearly basis, however, the total industrial output rose by 22.6% y/y in Q2, reflecting mainly a low base effect.

Further data and analysis on Brazil’s economy are available on the CEIC Brazil Economy in a Snapshot – Q2 2021 report.