Industrial Production in Brazil Declines

SAO PAULO (Reuters) – Industrial production in Brazil fell for the second consecutive month in November, indicating a possible cooling economy as the central bank tightens monetary policy to control inflation.

Production decreased by 0.6% in November from October, exceeding the 0.5% decline projected in a Reuters poll of economists, with output dropping in all four main categories surveyed.

In the previous month, production had fallen 0.2%.

Tighter financial conditions, increased economic uncertainty, and a recent sell-off in the Brazilian real have pressured the sector, according to Andres Abadia, chief Latin America economist at Pantheon Macroeconomics.

> “The outlook for the sector in the first half of 2025 is deteriorating, primarily due to tight financial conditions. However, the lagged effect of fiscal support and still-resilient domestic demand suggest that some sub-sectors will continue to perform relatively well,” he said.

Compared to a year earlier, industrial production in November rose by 1.7%.