Brazil’s machinery and equipment sector posted an 8.9% year-over-year decline in net revenue for July, marking the seventh consecutive monthly contraction, according to data released Tuesday by the Association of Machinery and Equipment Manufacturers (Abimaq).
Domestic sales fell 5.3% to R$18.7 billion, while apparent consumption dropped 5.3% to R$34.6 billion. Exports declined 10.9% to $1.1 billion, though imports rose 2.1% to $2.95 billion. On a sequential basis, adjusted sales edged up 0.7% compared with June, though the broader trend remained negative.
Over the first seven months of 2026, the sector’s accumulated revenue fell 12.9%, reflecting sustained weakness in investment amid restrictive monetary policy. Installed capacity utilization stood at 78.4% in July, slightly below the 78.7% recorded a year earlier. Order backlogs extended to 9.4 weeks, up 3.3% year-over-year, indicating some resilience in future demand despite current headwinds.
Abimaq attributed the domestic market’s persistent weakness to the prolonged impact of high interest rates on investment decisions, as outlined in a press release accompanying the data.
