RIO DE JANEIRO: Industrial output in Brazil barely grew in February, government data showed on Tuesday, throwing cold water on hopes of a quicker recovery from a two-year recession.
Industrial production rose 0.1 percent in February from January, government statistics agency IBGE said, short of expectations for an increase of 0.7 percent in a Reuters poll of economists.
Production fell 0.8 percent from a year earlier, compared to expectations of a 1.4 percent rise.
The disappointing performance of Brazilian manufacturers and miners in February added to a recent batch of frustrating data from retailers and service providers that had been expected to show Brazil's economy finally emerging from its worst-ever recession.
Economsts with MCM Consultores in a report said they were preparing to cut their estimate for Brazil's growth in the first quarter from the current 0.5 percent following the industrial output data.
A 6.5 percent increase in capital goods production was the silver lining in the data, though, in a sign of rising  investment.
"Brazil's industry is showing that the worst is over, but we can't really say that the sector is already recovering. It is stabilizing," IBGE economist Andr? Macedo said.
The IBGE report contrasts with a purchasing managers' survey showing the industrial sector picking up speed. The Purchasing Managers' Index compiled by research firm Markit showed in March the first increase in production and new orders in 26 months.
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