In brief
Industrial output fell 0.6% in August from July, according to IBGE.
Year on year, the decline was 1.2%.
What we know
04Transmission to assets
Market read-through
The industry decline, combined with worsening confidence, reinforces the reading of a slowing economy and may bring forward the debate on Selic cuts.
Portfolio impact
01Weaker activity may open room for Selic cuts.
Inflation still above target.
What would change the view: Further weak data.
Direction is an explanatory hypothesis, not a forecast or recommendation.
Next signals
What to watch
- August retail and services
- August IBC-Br
- Copom communication
Limits of the reporting
What remains uncertain
- Annual and year-to-date comparisons were reported by a single source read.