Brazils industrial output posts 2022 drop after stuttering second half

Brazil's industrial output posts 2022 drop after stuttering second half

SAO PAULO (Reuters) – Industrial production in Brazil ended 2022 with a total 0.7% drop over the previous year, government statistics agency IBGE said on Friday, giving back part of the gains the sector had recorded in 2021 after the pandemic-related downturn.

IBGE said the retreat came on the back of rising interest rates, which directly affected the cost of credit, as well as high inflation hurting household consumption.

Output remained unchanged in December from November, the statistics agency said, matching the median estimate in a Reuters poll of economists.

Brazils industrial sector stuttered in the second half of 2022, after starting the year in a positive tone due to government stimulus measures.

When compared with the previous year, the agency added, production in December retreated 1.3%. Local industrial output remained 2.2% below pre-pandemic levels of February 2020 and 18.5% below the May 2011 all-time high.