UPDATE 1-Brazil industrial output rises less than expected in June
(Adds data and context) BRASILIA, Aug 2 (Reuters) - Industrial production in Brazil rose 1.1 percent in June from May, the government statistics agency IBGE said on Tuesday, slightly below the 1.3 percent increase expected in a Reuters poll of economists. It was the fourth straight monthly rise in industrial output that accumulates an increase of 3.5 percent in the period. However, the recovery is not enough to make up for the losses posted in 2015, the statistics agency said in a statement. Production in June retreated 6.0 percent from a year earlier, marking the 28th consecutive month of a decline in the annual rate of industrial output. Brazilian industry, which had struggled for years with a strong local currency and high tax burden, continues to reel from a recession in its second year. Industrial output in the first six months of the year fell 9.1 percent compared with the same period last year, the statistics agency said. Production of capital goods rose 2.1 percent in June from May while consumer goods rose 1.2 percent in the same period. Economists expect Brazil's industrial output to shrink about 6 percent in 2016, in what is expected to be its last year of deep contraction before a gradual recovery starting in 2017. Manufacturers were hoping a weaker currency could help boost exports, but it has strengthened against the dollar in recent weeks. (Reporting by Alonso Soto Editing by W Simon)
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