Brazilian industrial production grew 0.2% in July compared to June, breaking a two-month streak of decline, according to IBGE data. The advance was mainly driven by computer and electronic equipment production and the extractive industry. However, compared to July 2024, industry fell 0.5%. Year-to-date from January to July, the sector shows a 1.1% increase, while the last 12 months show growth of 0.6%.
The month's result disappointed economic analysts, who had projected growth around 0.7% for July. Experts assess that industry has difficulty finding room to grow amid high interest rates, which limits the sector's dynamism.
Claudia Moreno, economist at C6 Bank, commented on the data and noted that the extractive industry grew 2.5% in July compared to the same month last year. Manufacturing, on the other hand, declined 1.1% in the same metric, indicating a disparity between the two segments of the industrial sector.
