UPDATE 1-Brazilian June factory output falls as capital goods weigh
(Adds capital goods production, background, table) RIO DE JANEIRO, Aug 4 (Reuters) - Brazilian industrial output fell less than expected in June, government data showed on Tuesday, although a sharp drop in capital goods production added to signs of a plunge in investments as the economy sinks. Industrial production in Brazil fell 0.3 percent in June from May, government statistics agency IBGE said, compared with the median estimate for a 0.7 percent decline in a Reuters poll of 22 analysts. Still, it was the sixth decline in eight months for Brazilian production, which has been battered by double-digit interest rates and steep cuts in government investments since the beginning of the year. Capital goods production fell 3.3 percent from May and 17.2 percent from a year earlier, dragged down by lower truck production. Output of durable consumer goods, such as automobiles and home appliances, fell 10.7 percent from May. The decline compounds Brazil's worst downturn in 25 years. Industrial production is expected to shrink 5 percent this year, while gross domestic product is seen dropping 1.8 percent, according to a weekly central bank poll. Output fell in 15 of 24 industrial segments on a monthly basis, with machinery, computing and automobiles contributing the most to the decline. Production in June retreated 3.2 percent from a year earlier , less than the median forecast for a 5.0 percent decline. (Percent change) June/May June'15/June'14 Capital goods -3.3 -17.2 Intermediate goods -0.2 -1.7 Consumer goods 0.0 -2.4 Durable consumer goods -10.7 -2.4 Semi-durable and 1.7 -2.4 non-durable consumer goods Industrial output -0.3 -3.2 (Reporting by Rodrigo Viga Gaier; Writing by Silvio Cascione; Editing by Chizu Nomiyama and Lisa Von Ahn)
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