By Silvio Cascione
BRASILIA, Jan 8 Industrial output in Brazil
dropped less than expected in November, but a sharp decline in
capital goods production suggested a weaker outlook for business
investments as the economy struggles to pick up speed.
Industrial production in Brazil dropped a
seasonally adjusted 0.2 percent in November from October,
statistics agency IBGE said on Wednesday. Output had been
expected to fall 1.05 percent, according to a Reuters poll of 26
Brazilian industry recovered modestly in the first 11 months
of 2013, growing 1.4 percent over the year-earlier period.
Growth has come in fits and starts, however, as businesses
grapple with competition from abroad due to high taxes, rising
wages and poor infrastructure.
Capital goods production plunged 2.6 percent in November
from October, the first monthly drop since July.
Of the 27 industrial sectors surveyed by IBGE, 14 reduced
output in November from October, including automobile and
November's industrial production advanced 0.4 percent from a
year earlier, topping expectations for a 0.95
percent drop in the Reuters survey.
(pct change) Nov/Oct Nov'13/Nov'12
Capital goods -2.6 9.6
Intermediate goods 1.2 1.3
Consumer goods 0.5 -2.2
Durable consumer goods 0.3 -4.1
Semi-durable and 0.3 -1.6
non-durable consumer goods
Industrial output -0.2 0.4