Brazil’s industrial output in March declined for a second straight month as Latin America’s biggest economy heads toward its deepest recession in 25 years.
Output in March fell 0.8 percent from the previous month, after a revised 1.3 percent decline in February, the national statistics agency said in Rio de Janeiro. That compares with the median estimate for a 0.7 percent drop from 33 economists surveyed by Bloomberg. Industrial output fell 3.5 percent from the year before.
President Dilma Rousseff’s government is trying to trim tax breaks provided to industry to boost revenue even after business confidence plummeted. Depressed sentiment due to faster inflation, higher borrowing costs and an economy on the verge of recession led to a drop in manufacturing.
Swap rates maturing in January 2017 rose 3 basis points, or 0.03 percentage point, to 13.54 percent at 9:07 a.m. local time. The real fell 0.3 percent to 3.0658 per U.S. dollar.
Output of capital goods in March fell 4.4 percent, the statistics institute said. Production of consumer goods fell 1.1 percent. Of the 24 industries studied by the institute, output declined in 14.