UPDATE 1-Brazil's industrial output edges up in April on record cane crush

jueves 2 de junio de 2016 09:26 GYT

(Adds details, table)
    By Silvio Cascione
    BRASILIA, June 2 (Reuters) - Brazil's industrial output
edged up unexpectedly in April as dry weather favored a strong
start to the cane crushing season for sugar and ethanol
producers, official data showed on Thursday.
    Industrial production in Brazil rose 0.1 percent in April
from March, statistics agency IBGE said, topping
expectations for a decline of 0.9 percent in a Reuters poll but
slowing from a 1.4 percent rise in March.
    Production in April retreated 7.2 percent from a year
earlier, compared to a decline of 11.4 percent in the prior
    It was the second consecutive month of gains for Brazilian
industry, which is struggling through one of the country's worst
economic crises ever. With output sliding back to 2008 levels,
manufacturers have reduced excessive inventories and prepared
for a gradual recovery possibly early next year.
    A pickup in biofuel production boosted April's industrial
output, IBGE said, after sugar mills crushed a record 36.07
million tons of cane in the second half of April, according to
private data. 
    Stronger production by food processors also lifted the
indicator, offsetting a decline in the auto industry.
    The IBGE data contrasts with a purchasing managers' survey
suggesting Brazil's industrial downturn intensified in April and
May. The manufacturing PMI index for Brazil fell in May to 41.6,
the lowest since 2009. 
    Data on Wednesday showed Brazil's economy shrank for a fifth
straight quarter in early 2016, but the drop was smaller than
forecast due to heavier government spending in the months before
a vote to impeach President Dilma Rousseff. 
 (Percent change)                      m-m              y-y
 Capital goods                         1.2            -16.5
 Intermediate goods                    0.5             -7.5
 Consumer goods                       -0.9             -4.0
     Durable consumer goods           -4.4            -23.7
     Semi-durable and                 -0.6              1.9
 non-durable consumer goods                 
 Industrial output                     0.1             -7.2
 (Reporting by Silvio Cascione; Editing by Will Dunham)