UPDATE 1-Brazil's industrial output remains stuck in October
(Adds details from IBGE report, context) By Asher Levine RIO DE JANEIRO, Dec 2 (Reuters) - Brazilian industrial output remained stable in October, missing expectations for a slight advance and dimming hope for an eventual turnaround in the country's long-suffering manufacturing sector. Output at factories and mines was unchanged in October from September, statistics agency IBGE said on Tuesday, falling short of forecasts for a 0.3 percent gain in a Reuters survey of 23 analysts. The latest numbers follow the industrial sector's 0.2 percent decline in September and are likely to quell the notion that Brazilian industry was finally turning around after advances of 0.6 percent in both July and August. Brazilian industry has contracted 3 percent in the first 10 months of the year, IBGE said. Years of mediocre performance among local manufacturers have been difficult for the government to halt despite waves of stimulus measures and tax breaks. Most economists blame hard-to-fix structural problems, such as tougher competition from abroad, poor infrastructure at home, and high tax and labor costs. October industrial production was down 3.6 percent from a year earlier, worse than the 3.0 percent decline forecast in the Reuters poll. Industrial output is expected to drop 2.26 percent in 2014 from the previous year, according to the median forecast of a weekly central bank poll of analysts released Monday, though output was seen growing 1.13 percent in 2015. That estimate is likely to be revised lower next week, especially after purchasing managers' index data released on Monday showed Brazil's manufacturing activity likely shrank in November. Capital goods production, which often tracks business confidence in future economic growth, was unchanged in October from September. Intermediate goods such as textiles and chemicals also remained stable, while durable consumer goods such as furniture and home appliances fell 0.8 percent. (For details on the IBGE industrial output figures, see, in Portuguese: here) (pct change) Oct/Sept Oct'14/Oct'13 Capital goods 0.0 -11.4 Intermediate goods 0.0 -2.8 Consumer goods 0.2 -2.4 Durable consumer goods -0.8 -9.4 Semi-durable and non-durable -0.6 -0.1 consumer goods Industrial output 0.0 -3.6 (Reporting by Rodrigo Viga Gaier and Felipe Pontes; Writing by Asher Levine Editing by W Simon)
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