BUENOS AIRES: Argentina's industrial production is seen expanding 2.0 percent year-on-year in November, rising for a second straight month after output contracted from April through September mainly due a steep drop in car-making.
Seven analysts polled by Reuters gave disparate estimates for last month's factory output, ranging from a 1.5 percent decline to a 2.8 percent increase. The median was for a rise of 2.0 percent.
In October, industrial production rose 2.2 percent from a year earlier, non-seasonally adjusted, improving from September's 4.4 percent decline.
Growth in Latin America's No. 3 economy is slowing sharply after booming for most of the last nine years.
Slack Brazilian demand for Argentine autos has been a major drag on industrial production in recent months. Analysts say tough new import rules imposed in February have also played a role by delaying the entry of some foreign-made parts, while currency controls hit investment.
"People thought the recovery in industry would start earlier, but it took longer than expected ... we think that the turning point could be in November," said Mariano Lamothe, chief analyst at Argentine consulting firm Abeceb.com.
"The automobile industry will be in very good shape, we're already seeing that in the production data, mainly because exports to Brazil have improved," he added.
Automobile production rose 3.2 percent in November from a year earlier, marking its second consecutive increase, and exports rose 9.3 percent, data from private carmaker group ADEFA showed.
Argentina sends about 80 percent of its auto exports to Brazil.
In November 2011, industrial output rose 4.0 percent year-on-year.
Center>Copyright Reuters, 2012
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