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