(Bloomberg) -- Brazil's industrial production plunged more than expected in March as the coronavirus pandemic reduced output to levels not seen in nearly 17 years.
Output fell 9.1% from February, more than the median estimate for a 3.7% decline from economists in a Bloomberg survey. In 12 months, production dropped 3.8%, the national statistics agency reported on Tuesday. In a statement, the agency said it was the worst monthly result for March since 2002, and that the reading brought production to roughly the same level recorded in August 2003.
Key Insights
- Of the 26 industrial sectors monitored by the statistics agency, 23 fell in March from the month prior.
- Companies from General Motors to Usiminas have shuttered plants in Brazil in response to falling demand prompted by the virus and fears that it may sicken workers.
- The pandemic has augmented existing challenges facing local industry, such as tepid investments and weak exports to key markets like Argentina.
- Brazil's central bank is expected to cut its interest rate for the seventh time on Wednesday to help buttress demand.
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- Capital goods production, which is a barometer for future investment, plunged 15.2% in March after rising in each of the previous two months.
- The moving three-month average for industrial production stood at -2.4%
- Production of cleaning and personal hygiene products rose on the month
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