Brazil's industrial output fell by 1.2pc in December from a month prior, marking the steepest decline since July 2024, according to national statistics agency IBGE.
All four major categories showed declines, with capital goods and durable consumer goods output down by 8.3pc and 4.4pc, respectively, from November 2025. Auto, chemicals and metallurgy were among the largest negative contributors, down by 8.7pc, by 6.2pc and by 5.4pc, respectively, from November, IBGE said.
Output of petroleum coke, oil products and biofuels increased by 5.4pc in December from the previous month, after three consecutive monthly drops, while the extraction industries pushed up output by nearly 1pc. Transformative industry ended the year at 1.9pc below November 2025. IBGE data show.
Despite month-to-month decreases, December's industrial output rose by 0.4pc from a year earlier. Plastic materials and machinery and equipment represented the largest contributors to the increase, which is also due to an additional workdays this year, IBGE said.
2025 output ticks up
Brazil's 2025 industrial output reached a third increase in a row at 0.6pc above a year earlier and pre-pandemic levels, following a 3.1pc rise in 2024, IBGE said.
Extraction and food industries were among the largest contributors to the increase, up by 4.9pc and 1.5pc, respectively. Machinery and equipment, metallurgy, chemicals and pharmacy products pushed up the Brazilian industry in 2025, despite a 5.3pc slump in the production of oil products and biofuels.
Production of durable and intermediate goods — feedstocks for industries that do not directly reach the final consumer — rose by 2.5pc and 1.5pc in 2025, respectively, from a year earlier. Brazilian auto industry, crude and natural gas production helped lead gains, IBGE said.
Brazil's central bank has kept its target interest rate stable at 15pc since June 2025. Brazil's headline inflation decelerated to an annual 4.26pc in December.
