The indicator marked its weakest August print since 2015 as investment intent dropped to 51.3 points.
Brazil's industrial production index fell 4.7 points month on month to 46.3 points in August, according to the National Confederation of Industry (CNI) on Monday, September 21. By falling below the 50-point neutral threshold, the index signaled a contraction in industrial activity.
The CNI reported that this was the weakest August result since 2015, when the index stood at 42.7 points during an economic crisis. The survey consulted 1,403 companies between September 1 and September 11, including 587 small, 487 medium, and 329 large enterprises.
Industrial investment intention also declined, falling 1.3 points from 52.6 points to 51.3 points in September. That marks the lowest level since August 2020 and represents the fourth consecutive monthly decline, accumulating a loss of 3.5 points since May.
The significant drop in investment intention reflects an ongoing loss of momentum in industrial activity. In addition, an increase in uncertainties also contributed to the result.
The slowdown comes despite five consecutive cuts to Brazil's benchmark Selic rate, which stands at 13.75% per year, as real interest rates remain among the highest in the world.
Newsletter
Markets in your inbox, weekly
Latin America-focused analysis, investment themes and the week in finance.
