FX.co ★ Brazil Industrial Output Contracts in August

In August 2025, Brazil experienced a 0.8% increase in industrial production, bouncing back from a slight 0.1% decrease in July and surpassing predictions of a 0.8% downturn. This growth was largely attributed to the manufacturing sector, which saw a 0.6% increase. However, extractive industries experienced a modest decline of 0.3%. Noteworthy sectors contributing positively included pharmaceuticals, which surged by 13.4%, coke and petroleum products along with biofuels, which grew by 1.8%, and the food industry, which increased by 1.3%. Additionally, significant advancements were reported in the printing and recording sector with a remarkable 26.8% rise, motor vehicles at 1.8%, and other transport equipment at 4.4%. Conversely, the chemicals sector saw a 1.6% decrease, halting its three-month period of growth, and contractions were also observed in machinery and equipment with a 2.2% decrease, wood products at a substantial 8.6% decline, and leather goods and footwear reducing by 3.6%. When viewed on an annual scale, industrial production decreased by 0.7%, following a slight 0.2% increase observed in July.