By Jeffrey T. Lewis
SAO PAULO – Brazil’s industrial production rose in May, the first increase in four months, as motor vehicle production surged and production of equipment and machinery increased as the coronavirus pandemic s ‘is attenuated.
Seasonally adjusted production rose 1.4% in May and rose 24% from a year earlier, the Brazilian Institute of Geography and Statistics, or IBGE said on Friday. In April, production increased by 1.5% revised during the month and 34.7% compared to the previous year.
Brazil’s economic activity continued to recover in May and business and consumer confidence rose, with the number of deaths from Covid 19 steadily declining after reaching a record high in April. But the surge in industrial production in May left the production level lower for the year yet again due to declines in previous months, according to Andre Macedo, IBGE’s research manager for the series.
“There is a return to the positive ground, but it is far from recouping this recent loss suffered by the industrial sector. Much of this predominantly negative behavior in recent months has a direct link with the resurgence of the pandemic in early 2021, which has wreaked havoc on production chains, “he said, adding that a shortage of raw materials continues to have an impact on production.
Motor vehicle production rose 216% in May from April, as factories ramped up production after many closed earlier due to a lack of parts and increased cases of Covid -19. The production of machinery and equipment rose 64.9% in the month, and the output of the mining and quarrying industries, including mining and oil production, rose 11.8%.
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