Brazilian industry contracts 0.2% in May, first decline since Dec 2025
Brazil's industrial production fell 0.2% in May compared with April, marking the first monthly contraction since December 2025. Over the same period, output was up 0.2% year‑on‑year and 0.4% over the past 12 months, keeping the sector 4.5% above its pre‑pandemic level but still 13% below the 2011 peak.
The decline was driven mainly by the coke, petroleum‑derived and bio‑fuel segment (‑6.1%) and by extractive industries (‑2.6%). Durable‑goods output rose 3.6%, while the automotive sector posted a 4.1% increase, sustaining the only positive monthly growth among major categories.
An analysis notes that the slowdown occurs amid high base‑rate interest (14.25%) and limited fiscal stimulus due to the election cycle, but employment in manufacturing remains strong, with 4,974 new formal jobs added in May.