MarketWatch
Brazil's industrial production fell in June, the first decline in five months, after scarcity for some supplies pushed costs up and high interest rates and unemployment reduced demand.
Production fell a seasonally adjusted 0.4% in June and fell 0.5% from a year earlier, the Brazilian Institute of Geography and Statistics, or IBGE, said Tuesday. In May, production rose 0.3% in the month and grew 0.5% from a year earlier.
Logistics problems and Covid-related lockdowns in China have made it more difficult for manufacturers to acquire the supplies they need to keep factories running smoothly, according to André Macedo, the IBGE's research manager for the industrial production series.
"The behavior of industrial activity has been marked by stoppages at industrial plants, reductions in working hours and collective vacations," he said.
Output of intermediate goods, which are materials such as steel and plastics that are used in the production of other goods, declined 1.8% in the month, outweighing increases in production of capital goods and consumer products, according to the IBGE. Output of capital goods increased 0.2% in the month, and production of consumer goods rose 1.5% in the period.
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