Brazil’s Industrial Output Jumps 1.8% in January, Broad Rebound Beats Forecasts

Overview

• Industrial production rose 1.8% from December, the strongest monthly increase since June 2024, topping a median forecast of 0.8% even after December was revised to a 1.9% drop.
• Gains were broadly based, with 19 of 25 industrial branches expanding and all four major categories posting month‑on‑month growth.
• Key contributors included chemicals up 6.2%, motor vehicles and parts up 6.3%, and coke, petroleum derivatives and biofuels up 2.0%.
• Despite January’s rise, output still shows a 0.8% cumulative decline over the past five months, and machinery and equipment fell 6.7% in the month.
• Compared with a year earlier, production edged up 0.2% and is up 0.5% over 12 months, leaving industry 15.3% below its May 2011 peak and 1.8% above the pre‑pandemic level.