UPDATE 1-Brazil's industrial output drops 1.2 pct in August

viernes 2 de octubre de 2015 08:59 GYT

(Adds table, background, details)
    SAO PAULO, Oct 2 (Reuters) - Brazilian industrial output
declined for the third straight month in August on sapped demand
for capital goods amid worries over the future of the nation's
battered economy.
    Industrial production in Brazil fell 1.2 percent in August
from July, statistics agency IBGE said on Friday,
less than the 1.6 percent drop expected in a Reuters poll. 
    Still, it was the sixth monthly retraction this year for
Brazil's manufacturers, which have laid off tens of thousands of
workers as they struggle to get rid of excess inventory.
    On an annual basis, production fell 9.0 percent,
its 18th consecutive month of decline.
    Output dropped in 14 of 24 industrial segments on a monthly
basis, with a fall in automobiles and metal products weighing
most heavily on the industrial output decline.
    Brazil's industrial crisis is one of many features of the
country's deepest recession since at least 1990. Gross domestic
product could shrink about 2.8 percent in 2015, with growth
returning only in 2017, according to economists. 
    Capital goods production plunged 7.6 percent on a monthly
basis as businesses put off investments, while record-low
consumer confidence dragged durable consumer goods production
down by 4 percent.
    Industrial output is seen off 6.65 percent this year, a
weekly central bank poll showed on Monday.
    September was probably not much better for Brazilian
manufacturers, a private survey suggested on Thursday. The
Purchasing Managers' Index (PMI) for manufacturing contracted
for an eighth straight month in August. 
    A recent currency decline has failed to spark a recovery
among exporters of manufactured goods, which are wrestling with
rivals in China and Mexico for markets. The Brazilian real
 is trading near all-time lows following a 34 percent
decline against the U.S. dollar this year.
 (Percent change)                 Aug/July    Aug'15/Aug'14
 Capital goods                        -7.6            -33.2
 Intermediate goods                    0.2             -5.5
 Consumer goods                       -0.9             -9.1
     Durable consumer goods           -4.0            -14.6
     Semi-durable and                 -0.3             -7.6
 non-durable consumer goods                 
 Industrial output                    -1.2             -9.0
 (Reporting by Brazil newsroom; Writing by Asher Levine; Editing
by Jeffrey Benkoe)