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Industrial Production Falls at an Accelerated Pace. Read About the IBGE Survey That Shows the Sector’s Negative Performance and Regional Impact.
A news item that brings a warning sign for the Brazilian economy. Industrial production falls and the sector’s performance, which had already been facing difficulties, shows a retraction scenario. The national industry shrank 1.3% in June 2025 compared to June 2024, confirming the sector’s slowdown.
The information was released by the Brazilian Institute of Geography and Statistics (IBGE) on the morning of Friday, the 8th, through data from the Monthly Industrial Survey – Regional Physical Production, which reveals negative performance in more than half of the locations surveyed in the country.
The Global Analysis: National Industry in Retraction
The most concerning figure from the survey is the global average. On a global average, national industry shrank 1.3% in June 2025 compared to June 2024.
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This is the result of a combination of economic factors that have pressured the sector, such as high interest rates, global instability, and weakened domestic demand.
The retraction of industrial production is a key indicator of a country’s economic health, and a negative performance like this points to significant challenges that need to be addressed.
The decline affects not only wealth generation but also employability, investor confidence, and long-term growth capacity.
The Map of Decline: Losses by Region
The crisis in the industry was not uniform, with some regions suffering much more significant losses than others.
The IBGE study reveals that industrial production falls more sharply in some federative units. The list of losses includes:
- Rio Grande do Norte (-21.4%): with the largest drop in the country, the state’s industry faces a scenario of great instability.
- Mato Grosso do Sul (-11.7%): a significant retraction that may be linked to key sectors of the local economy.
- Mato Grosso (-10.8%): the state, known for agribusiness, also feels the effects of the crisis in the industrial sector.
- São Paulo (-8.5%): as the largest industrial hub in the country, the significant drop in the state is a clear sign of the sector’s fragility at the national level.
- Pará (-3.0%): the decline in production in Pará may reflect the slowdown in sectors related to mining or extraction industry.
- Rio Grande do Sul (-2.5%): the state, with a diversified industrial park, also registered losses, showing that the crisis is not limited to a specific type of economy.
- Ceará (-0.1%): despite being the smallest drop on the list, the result is still negative and contributes to the national average in retraction.
The unequal regional performance, with such sharp declines in some states, demonstrates that the crisis in the industry has multifaceted causes, ranging from macroeconomic issues to the particularities of each state’s local situation.
Factors Behind Negative Performance
In addition to internal and external issues that affect the economy, industrial production falls also due to specific problems in production chains.
The scenario of high prices for both raw materials and energy has eroded companies’ profit margins.
The lack of credit incentives and the indebtedness of families also directly impact the consumption of industrial goods, which weakens production.
The government and sector entities now face the challenge of analyzing these data from the Monthly Industrial Survey – Regional Physical Production to seek solutions.
The fact that national industry shrank 1.3% in June 2025 compared to June 2024 is a number that cannot be ignored and requires a rapid response to prevent the crisis from deepening.
The decline in industrial production represents a challenge for the country’s economic growth, and the big question now is how the industry and the government will act to reverse this negative scenario.
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