UPDATE 1-Brazil industry rebounds in January led by capital goods

martes 11 de marzo de 2014 09:10 GYT

By Asher Levine
    SAO PAULO, March 11 (Reuters) - Brazilian industrial output
rebounded in January led by a jump in capital goods production,
though the advance failed to make up for the sector's sharp
plunge in the previous month.
    Industrial production in Brazil rose 2.9 percent
in January from December, government statistics agency IBGE said
on Tuesday, beating expectations for a 2.5 percent rise in a
Reuters survey of 31 analysts. Forecasts for the increase ranged
from 1.0 to 3.2 percent.
    January's advance comes just one month after Brazilian
industry posted its steepest  monthly decline since December
2008. December's industrial production drop from November was
revised on Tuesday to an even further 3.7 percent from 3.5
percent previously.
    Manufacturers have consistently been the weakest link in
Brazil's economy as they struggle with competition from abroad,
high tax and labor costs, and poor infrastructure.
    With Brazilian economic growth widely expected to come in
below 1.7 percent this year, many businesses have retrenched,
cutting back on investment in order to brace for turbulence.
    While capital goods production rose 10 percent in January
from December, its base of comparison was low following a 12.2
percent drop in December, revised down from a 11.6 percent
decline by IBGE on Tuesday.
    IBGE also revised December's decline from a year earlier to
2.5 percent from 2.3 percent previously. 
    Of the 27 industrial sectors surveyed by IBGE, 17 expanded
in January from December, including pharmaceuticals, office
equipment and machinery.
    Automobile production rose for the first month in four,
climbing 8.7 percent from December as workers returned from
collective vacations.
    In broader industrial categories, consumer goods rose 2.3
percent from December while intermediate goods advanced 1.2
    January's industrial production shrank 2.4 percent from a
year earlier, while the median estimate in the
Reuters survey pointed to a 3.4 percent drop. Estimates for the
decline ranged from 1.5 percent to 5 percent.
    Economists expect industrial output to grow 1.57 percent
this year, according to the median forecast in a central bank
poll released Monday. A week earlier, the poll predicted 1.8
percent growth for the year.

 (pct change)                   Jan/Dec    Jan
 Capital goods                       10.0         2.5
 Intermediate goods0                  1.2        -2.7
 Consumer goods                       2.3        -3.6
     Durable consumer goods           3.8        -5.4
     Semi-durable and                 1.2        -3.0
 non-durable consumer goods                
 Industrial output                    2.9        -2.4