Brazil Industrial Output Rises a Fourth Month on Oil and Mining

Brazil · Economy

Key Facts

—The print: Brazil’s industrial production rose 0.7% in April from March, seasonally adjusted, a fourth consecutive monthly gain, per the IBGE statistics agency.

—The run: The four-month streak adds up to 4.4% of cumulative growth, leaving output 4.7% above its pre-pandemic level but still 12.9% below the all-time peak of May 2011.

—The drivers: Mining and oil-and-biofuel refining each rose 3.1%, a fifth straight monthly advance, led by crude, natural gas, iron ore and diesel.

—The drag: Eleven of 25 industry branches fell, led by chemicals (-3.9%), pharmaceuticals (-6.0%), machinery (-2.9%) and vehicles (-0.7%).

—The trend: Industry is up 1.7% over the first four months of 2026 versus a year earlier, confirming a cyclical recovery after late-2025 weakness.

Brazil’s factories are on their longest winning streak in over a year — but the gains are concentrated in commodities, while the manufacturing core that needs cheaper credit is still lagging.

Brazil industrial production extends its run

Brazilian industrial production grew 0.7% in April from March on a seasonally adjusted basis, the fourth consecutive monthly increase, according to the Monthly Industrial Survey released on June 3 by the Brazilian Institute of Geography and Statistics (IBGE). Across the four-month streak the sector has accumulated 4.4% of growth, a notable turnaround for an industrial base that spent much of late 2025 signalling weakness. Output now sits 4.7% above its pre-pandemic level of February 2020, but remains 12.9% below the record reached in May 2011 — a reminder of how far Brazilian industry still is from its historical high-water mark.

Two of the four broad economic categories and 14 of the 25 industrial branches surveyed rose on the month. For the year so far, industry is up 1.7% against the same period of 2025, a modest but broad-based improvement that fits the wider picture of an economy that accelerated in the first quarter.

Commodities lead, manufacturing lags

The composition of the gain matters as much as its size. The most significant positive contributions came from extractive industries and from coke, petroleum products and biofuels, each up 3.1% and each growing for a fifth straight month. Survey manager André Macedo attributed the strength to crude oil, natural gas and iron ore on the extractive side, and to ethanol and oil derivatives — diesel in particular — on the refining side. Further support came from rubber and plastics (3.1%), wood products (8.5%), textiles (4.1%) and electrical machinery (2.2%).

The weak spots, by contrast, sat squarely in higher-value manufacturing. Chemicals fell 3.9%, the single largest drag on the month, while pharmaceuticals dropped 6.0%, machinery and equipment 2.9%, metallurgy 1.0% and motor vehicles 0.7%. That split — resource extraction and refining advancing while capital-goods and consumer-durable factories retreat — captures a recurring feature of Brazil’s recovery: the commodity complex, buoyed by elevated oil output and strong global demand for iron ore, is doing the heavy lifting, while interest-rate-sensitive manufacturing waits for relief.

Live Market IntelligenceBrazil — Live Market BoardInside: market breadth, the sector heatmap, currencies & rates, the Latin America scoreboard and the full instrument board.

Rio Times · Live Market Intelligence

Brazil — Live Market Board

B3 · São Paulo

Jun 5, 2026 · 06:40

Ibovespa · benchmark

170,331

-2.22%

+23.84% over 12 months

Market breadth · 15 names

13% advancing

2 ▲ advancing13 declining ▼

Currencies, rates & key inputs

USD / BRL

5.07

+0.06%

EUR / BRL

5.91

+0.35%

Selic rate

14.50%

·

Brent crude

94.35

-0.72%

Iron ore

161.91

·

Sector heatmap · average move today

Materials

+1.95%

SUZB3

Energy

+0.11%

PETR4, PRIO3

Industrials

-1.92%

WEGE3, RENT3

Consumer Staples

-2.31%

ABEV3

Financials

-2.69%

ITUB4, BBDC4, BBAS3, B3SA3

Mining

-4.07%

VALE3, CSNA3, GGBR4

Utilities

-4.42%

ENEV3

Consumer Disc.

-8.48%

AZZA3

Latin America scoreboard

IndexLastTodayStrength

IbovespaBrazil

170,331

-2.22%

S&P/BMV IPCMexico

67,392

-1.31%

S&P IPSAChile

10,304

-0.54%

S&P MERVALArgentina

3,174,511

+0.33%

MSCI COLCAPColombia

2,228.19

-0.48%

BVL S&P PerúPeru

34,937.73

+0.29%

Full instrument board

Instrument

Last

Change

YoY

Prev.

High

Low

Volume

IBOV

170,331

-2.22%

+23.84%

174,198

—

—

—

USD/BRL

5.07

+0.06%

-10.02%

5.06

5.08

5.06

—

SELIC

14.50%

—

—

—

—

—

PETR4

41.25

-0.77%

+36.68%

41.57

41.87

41.25

42,592,300

VALE3

81.79

-3.78%

+55.70%

85.00

83.79

81.79

19,160,100

ITUB4

38.72

-2.12%

+7.70%

39.56

39.30

38.64

40,828,700

BBDC4

17.37

-2.14%

+5.27%

17.75

17.62

17.31

30,093,300

BBAS3

19.53

-1.81%

-15.01%

19.89

19.87

19.46

26,803,500

B3SA3

15.52

-4.67%

+9.45%

16.28

16.16

15.46

41,244,500

ABEV3

16.07

-2.31%

+14.70%

16.45

16.32

16.05

24,072,100

WEGE3

41.78

-0.52%

+0.19%

42.00

42.45

41.29

6,570,300

PRIO3

62.59

+0.98%

+52.84%

61.98

63.30

61.66

8,898,500

SUZB3

41.22

+1.95%

-18.21%

40.43

41.25

40.18

6,497,500

RENT3

40.44

-3.32%

-6.22%

41.83

41.32

40.18

7,370,100

AZZA3

17.38

-8.48%

-61.27%

18.99

18.64

17.24

4,221,800

CSNA3

6.68

-6.31%

-20.29%

7.13

6.98

6.53

25,238,100

GGBR4

24.13

-2.11%

+48.58%

24.65

24.24

23.80

13,008,100

ENEV3

24.23

-4.42%

+71.84%

25.35

25.07

24.21

18,055,400

Largest moves today

AZZA3

17.38

-8.48%

CSNA3

6.68

-6.31%

B3SA3

15.52

-4.67%

ENEV3

24.23

-4.42%

VALE3

81.79

-3.78%

RENT3

40.44

-3.32%

ABEV3

16.07

-2.31%

IBOV

170,331

-2.22%

The session read

The Ibovespa eased 2.22%, with breadth negative — 2 of 15 names higher. Materials led, while Consumer Disc. lagged.

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What it means for the rate outlook

The data lands just ahead of the central bank‘s June 16-17 monetary policy meeting, with the benchmark Selic rate still at a restrictive level and the market’s year-end forecast clustered around 13%. A resilient industrial sector gives policymakers some comfort that the economy can absorb high rates without stalling, but the manufacturing softness underlines why the easing cycle matters: the branches dragging on the index — machinery, vehicles, durable-goods inputs — are precisely those most exposed to the cost of credit. For investors, the print reinforces a now-familiar read on Brazil: a commodity-anchored expansion that is real but uneven, with the breadth of the recovery still hostage to the rate path and to election-year fiscal signals.

The next industrial-production reading, covering May, will show whether the four-month streak can survive the deceleration already visible in parts of the manufacturing core — and whether the commodity tailwind that has carried the index since the start of the year holds as global energy and metals prices fluctuate.

Frequently Asked Questions

How much did Brazil’s industrial output rise in April?

It rose 0.7% from March on a seasonally adjusted basis, the fourth straight monthly gain, for cumulative growth of 4.4% over the four months, according to IBGE.

What drove the increase?

Mining and oil-and-biofuel refining each rose 3.1%, led by crude oil, natural gas, iron ore and diesel — a fifth consecutive monthly advance for both.

Which sectors fell?

Higher-value manufacturing lagged: chemicals dropped 3.9%, pharmaceuticals 6.0%, machinery 2.9% and motor vehicles 0.7%, with 11 of 25 branches declining.

Is Brazilian industry back to its peak?

No. Output is 4.7% above its pre-pandemic level but still 12.9% below the all-time high reached in May 2011.