Brazil’s industrial output falls for second straight month

SAO PAULO (Reuters) – Industrial manufacturing in Brazil fell for the second month in a row in November, knowledge confirmed on Wednesday, in an indication the financial system could also be cooling because the central financial institution tightens financial coverage to tame inflation.

Manufacturing was down 0.6% in November from October, greater than the 0.5% decline projected in a Reuters ballot of economists, with output falling within the 4 most important classes surveyed.

Within the earlier month, manufacturing had declined 0.2%.

Tighter monetary situations, elevated financial uncertainty and the current sell-off within the Brazilian actual have put strain on the sector, in accordance with Andres Abadia, Pantheon Macroeconomics’ chief Latin America economist.

“The outlook for the sector within the first half of 2025 is deteriorating, primarily as a consequence of tight monetary situations. However the lagged impact of fiscal assist and still-resilient home demand counsel that some sub-sectors will proceed to carry out comparatively nicely,” he stated.

In comparison with a 12 months earlier, industrial manufacturing in November grew 1.7%.