Brazil IP - 'less bad' is as good as it gets

摘要

It is extremely difficult to be positive about the prospects for Brazil's economy. Although December IPfell another 0.7% m/m to finish the year down by8.3%, there are some indications in the recentMarkit PMI survey which indicate manufacturingmay be approaching a trough.IBGE reported that total IP in December fell by 0.7%m/m and by 8.2% for the year as a whole. Thoughmining finished 4.1% higher than in 2014, last yearwas a dismal one year for manufacturing withoverall output down by 9.7%. Capital goodsproduction posted a massive decline of 25.4% whileconsumer durable goods output dropped by 18.8%.Separately, LMC Automotive reported that totalvehicle production fell by 20.4% in 2015.