By Jeffrey T. Lewis
SAO PAULO--Brazil's industrial production rose in August as economic activity continued to recover following the easing of social distancing rules.
Production rose a seasonally adjusted 3.2% and declined 2.7% from a year earlier, the Brazilian Institute of Geography and Statistics, or IBGE, said Friday. In July, production rose a revised 8.3% for the month and shrank a revised 2.8% from a year earlier.
August was the fourth consecutive month with an improvement over the previous month, after output plunged in March and especially April. Brazilian cities and towns have been easing social distancing measures for months now, allowing consumers to get out to shops and many businesses to reopen.
Production still hasn't regained all the ground lost early in the pandemic, though with the pace of coronavirus infections and deaths slowing in Brazil, and consumer and business confidence improving, there could still be room for improvement in coming months.
"There's a very consistent and widespread advance among the categories, but there is still a part to be recovered," said Andre Macedo, the IBGE's research manager for the series.
Production of capital goods increased 2.4% in the month from July, but fell 16.9% from a year earlier, while output of consumer goods grew 2.9% in the month and fell 7.1% from a year earlier, the IBGE said. The biggest increase in the month, though, was the 18.5% jump in production of durable goods, according to the agency.
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(END) Dow Jones Newswires