After three consecutive months of increases in production in the industrial sector, output in Brazil fell 1.3% in January, compared to December.
However, compared to January 2005, output is up 3.2%, reports the Brazilian government statistical bureau (Instituto Brasileiro de Geografia e Estatística) (IBGE) in its monthly sector survey report.
In a note the IBGE says that the contradiction in the numbers indicates a downturn. In December 2005, the cumulative industrial growth rate for the previous twelve-month period was 3.1%. In January it dropped to 2.9%.
The IBGE January report for the industrial sector found decreases in production in 12 out of the 23 sectors surveyed. The biggest drop was in durable goods, down 5.7%. Capital goods were down 3.6%.
On the other hand, the petroleum and iron ore mining sectors turned in strong performances. They (the sector is called Extraction) were up 12.8%, compared to January 2005.