Industrial production falls 0.6% in April after rising in the previous month

Brazilian industrial production had a drop of 0.6% in April compared to March, according to IBGE data released this Tuesday morning (2). The negative result comes after an increase of 1% in the previous month and two accumulated declines, adding up to a retraction of 1% in the year (see in full).

Industrial production also had an even greater drop compared to April last year, of 2.7%. As a result, according to the IBGE, the industry has a negative variation of 2% compared to the pre-pandemic level.

The sectors of machinery and equipment (-9.9%), motor vehicles (-4.6%) and food products (-3.2%) recorded the biggest falls in the period. However, the latter, the balance is still positive according to the IBGE.

“Before this sequence of falls, the sector presented positive results for three consecutive months, generating an accumulated gain of 20.2%. Therefore, it is still a positive balance”, says André Macedo, research manager.

Beef exports to China helped hold back the drop in the food products sector, affected by the higher volume of rain in the sugarcane producing regions in the Center-South of the country.

Macedo also explains that the sector of motor vehicles was mainly affected by the stoppage of production at automakers and difficulties in accessing credit for the purchase.