BRASILIA: Brazil's industry snapped a four-month string of gains in January as auto output sharply declined, highlighting an uneven economic recovery.
Industrial output fell 2.4 percent in January from the month before, government statistics agency IBGE said on Tuesday, a larger decline than the 1.9 percent median forecast in a Reuters poll of economists.
That was the first underwhelming result for the nation's industry since September, adding to signs of reduced economic momentum following a weaker-than-expected fourth-quarter gross domestic product reading.
Auto production, which had shown signs of consistent strength in the second half of 2017, fell 7.6 percent in the month, helping to drag down industrial firms as a whole.
Weakness was widespread, with 19 of the 24 industrial segments tracked by IBGE falling in the month. Still, IBGE economist Andr? Macedo said the monthly decline is compatible with a slow industrial recovery.
"The industrial sector continues to present characteristics of a recovery of last year's losses, though a gradual recovery," he said.
Industrial output rose 5.7 percent from the year before, compared to the median economist estimate of a 5.85 percent increase.
Record-low interest rates have helped to lift Brazil's industry from a recession-induced rout, which left firms sitting on top of idle capacity and heavy debt loads.
Comments
Comments are closed for this article.