Industrial production grows 8% in July, without eliminating losses from the pandemic

Brazilian industrial production grew 8% in July, compared to June, according to the Brazilian Institute of Geography and Statistics (IBGE).
Despite the 3rd consecutive high, the result was still not enough to eliminate the 27% loss accumulated in March and April, which brought the production level to its lowest point in the series.
The advance recorded in July also represents a slowdown from the growth of 8.7% in May and 9.7% in July, according to data reviewed by IBGE.
Compared to July last year, the industry followed in the red, with a 3% fall, the ninth negative result.
In the year, the sector accumulated a loss of 9.6%. In 12 months, the accumulated drop is still 5.7%, marking the most intense decline since December 2016 (-6.4%) and accelerating the loss compared to previous months.
- Perspectives
After the record fall of industry and GDP (Gross Domestic Product) of Brazil in the second quarter, the expectation is for gradual recovery in the third quarter, despite uncertainties about the dynamics of the coronavirus pandemic and the direction of public accounts.
The Getulio Vargas Foundation's Industry Confidence Index (ICI) advanced for the 4th month in a row in August, recovering 93.8% of the losses recorded between March and April, amid reduced idleness and improved expectations.
The current market estimate is a drop of 5.28% of GDP in 2020, according to the Central Bank's Focus survey.
Even with the improvement in forecasts in recent weeks and a reduction in pessimism, it should still be by far the worst annual performance ever recorded in the country.