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February Brings Modest Industrial Gain in Brazil

Officials link the monthly rise to a weak base rather than a broad turnaround.

Overview

  • CNI reported real manufacturing revenue rose 4.9% in February from January, after a 1.3% rise in January that put the two-month level 6.2% above December 2025.
  • Despite the back-to-back gains, revenue fell 8.5% compared with the first two months of 2025, showing the recent rebound has not closed last year’s gap.
  • IBGE said national industrial output grew 0.9% on the month, with increases in 11 of 15 areas, led by Espírito Santo at 11.6% and Rio Grande do Sul at 6.7%, while output was down 0.7% from a year earlier.
  • Capacity use stayed low as utilization held near 77.3% in February, which was 1.6 percentage points below the same period last year.
  • Work activity and jobs were soft, with hours worked up 0.7% on the month, employment down 0.1%, and pay measures showing small year-over-year gains.