Brazil’s Industrial Output Sinks at the Start of the Year Under High Borrowing Costs

  • Food, mining and clothing production caused monthly drop
  • Lula offering tax breaks to help blunt high interest rates
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Brazil’s industrial output fell sharply at the beginning of the year, a worrying sign for the prospects of economic growth in the months ahead.

Official data released Wednesday showed production decreased 1.6% in January from the month priorBloomberg Terminal, just less than the median estimate of a 1.7% drop from analysts surveyed by Bloomberg. From a year earlier, output gained 3.6%.