Brazil Industrial Output Falls Less Than Forecast in Augustby
Brazil’s industrial output in August fell less than forecast by analysts, as production of parts and components rebounded.
Output in August fell 1.2 percent from the previous month after a 1.5 percent decline in July, the national statistics agency said in Rio de Janeiro. The third straight monthly decline was smaller than the median 1.6 percent drop forecast from 39 economists surveyed by Bloomberg. Industrial output fell 9 percent from the year before.
Industrial confidence and capacity utilization in Latin America’s largest nation have plunged to new lows as Brazil slides into its deepest recession in a quarter century. President Dilma Rousseff has yet to present a plan that convinces investors the economy will rebound, further discouraging investments.
“I have a hard time finding any good news out of this number, even though it was less weak than the market was expecting,” Italo Lombardi, senior Latin America economist at Standard Chartered Bank, said by telephone. “It’s pretty weak.”
Swap rates maturing in January 2017 fell 13 basis points to 15.64 percent at 9:51 a.m. local time. The real gained 0.3 percent to 3.9978 per U.S. dollar. It has weakened 34 percent this year, the most among 24 emerging-market currencies tracked by Bloomberg.
Output of capital goods in August, a barometer of investment, fell 7.6 percent, the statistics institute said. Production of intermediate goods rose 0.2 percent, which may account for the upside surprise, Lombardi said. Of the 24 industries surveyed by the institute, production fell in 14.