UPDATE 1-Brazil industrial output rises unexpectedly in May

jueves 2 de julio de 2015 09:18 GYT

(Adds details from IBGE report)
    SAO PAULO, July 2 (Reuters) - Brazilian industry advanced
unexpectedly in May, led by an uptick in consumer goods
production, though the data is unlikely to dispel concerns over
a looming recession in Latin America's largest economy.
    Industrial production in Brazil rose 0.6 percent in May from
April, government statistics agency IBGE said on
Thursday. It was the first increase after three straight months
of declines, and defied the median estimate for a 0.6 percent
contraction in a Reuters survey of 25 analysts.
    Consumer goods production rose 1.4 percent in the month, led
by perfumes, cleaning products and clothing.
    Production grew in 14 of 24 industrial segments on a monthly
basis, with transportation equipment excluding automobiles
contributing the most to the advance.
    Still, Brazilian industry has retreated 6.9 percent in the
year to date compared with the same period a year earlier. 
    Most economists say industry's steady erosion over the past
three years is not about to reverse course in the short term. 
    A drop in commodities prices and greater fiscal tightening
is weighing on the nation's economy, which many analysts expect
to fall into recession this year.
    Durable consumer goods retreated 0.1 percent from April and
17.8 percent from May 2014 as heavier household debt loads and
higher interest rates sapped demand for big-ticket items.
    Hard-to-fix structural problems, such as low productivity,
poor infrastructure at home and high tax and labor costs are
widely cited as further barriers to growth among local
    Production retreated 8.8 percent in May from a year earlier
, less than the median forecast for a 10.2 percent
 (Percent change)                May/Apr    May'15/May'14
 Capital goods                   0.2        -26.3
 Intermediate goods              -0.5       -4.9
 Consumer goods                  1.4        -12.0
     Durable consumer goods      -0.1       -17.8
     Semi-durable and            1.2        -10.4
 non-durable consumer goods                 
 Industrial output               0.6        -8.8

 (Reporting by Rodrigo Viga Gaier and Walter Brandimarte;
Writing by Asher Levine; Editing by Bernadette Baum)