Overview
- Factory revenue increased 2.3% from December but was still down 9.7% compared with January 2025, according to CNI.
- Hours worked ticked up 0.5% on the month, yet fell 2.6% year over year after a downturn that began in the second half of 2025.
- Industrial employment grew 0.5% in January, ending four consecutive monthly declines, though it remained 0.2% below a year earlier.
- Capacity utilization held near 77.6%, up 0.2 percentage point from December and 1 point lower than in January 2025.
- CNI cites high interest rates, costly credit, weak demand and stronger imports as ongoing drags, and it anticipates the Copom will begin cutting the Selic this month even as rates stay elevated.