* Activity rose 4.7 pct in October vs September
* Data far exceeds market expectations for a decline
* Industry output still down 0.9 percent in Jan-Oct period
By Juliana Castilla
BUENOS AIRES, Nov 21 Argentina's industrial
output rebounded in October, rising 2.2 percent from
a year ago in its first gain n seven months as the car industry
picked up, government data showed on Wednesday.
The government said factory production rose 4.7 percent in
October from September, seasonally adjusted, suggesting activity
is coming off mid-year lows in Latin America's third-largest
Argentina's economy has slowed this year after booming for
most of the last nine years, hurt by high inflation and sluggish
growth in Brazil, its key trade partner.
October's better-than-expected result reflected a revival in
the automobile industry, a primary industrial player in the
South American country.
"We've seen the first signs (of recovery)," said Abel
Viglione, an analyst the Buenos Aires-based consulting firm
FIEL, adding that it was still too early to say if the economy
had turned a corner.
Brazilian demand for Argentine automobiles is a key factor
for industrial production since Argentina sends about 80 percent
of its automotive exports to its giant neighbor.
Both production and exports recovered sharply last month,
partly explaining the industrial rebound.
Argentine automobile production rose 8.4 percent in October
from a year earlier, compared with a 14.1 percent decline in
Exports improved significantly, rising 20.7 percent
year-on-year versus a drop of 9.8 percent in September, data
from private carmaker group ADEFA showed.
The textile and refining sectors also performed well in
October, according to the national statistics agency INDEC.
Wednesday's data far outpaced expectations. Six analysts
surveyed by Reuters forecast a 1.2 percent decline in factory
output last month year-on-year, according to the median of
estimates ranging from -3.0 percent to +1.0 percent.
In the first 10 months of the year, factory output in
Argentina fell 0.9 percent from the same period a year earlier,
according to the non-seasonally adjusted data.
In October 2011, industrial output rose 4.1 percent
year-on-year. In September this year, it fell 4.4 percent.