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Brazilian industry grows, but political crisis may slow reaction

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Brazilian industrial production grew in May for the second consecutive month, and this time with a generalized increase among the various economic activities

For economists, however, the result does not guarantee the recovery of the sector, which pulled down the Gross Domestic Product in the first quarter.

The increase in May was 0.8%, the best performance for the month since 2011, according to IBGE (Brazilian Institute of Geography and Statistics). In April, according to data now revised by the institute, growth was 1.1%

“There is clearly a predominance of positive rates and all economic categories registered growth,” said IBGE industrial research coordinator André Macedo, who noted, however, that the industry is still at the level of February 2009.

“Of course that, with two consecutive months of growth and spreading by activities, is a relief, but the result is far from guaranteeing that it is a path of sustainable growth for the industrial sector,” he said.

The caution was reinforced by other economists, who pointed to indicators already referring to June as signs that the growth curve could slow or even reverse.