UPDATE 1-Brazil industrial output drops less than expected in Feb

miércoles 1 de abril de 2015 08:55 GYT
 

(Adds details from IBGE report, context)
    RIO DE JANEIRO, April 1 (Reuters) - Brazilian industry
shrank less than expected in February, but a recovery looked
unlikely as the economy continues to sink toward a recession.
    Industrial production in Brazil dropped 0.9 percent in
February from January, government statistics agency
IBGE said on Wednesday. That beat the median estimate for a 1.6
percent decline in a Reuters survey of 28 analysts.
    Still, most economists say the steady erosion of Brazilian
industry over the past three years is not about to reverse
course in the short term. A drop in commodities prices and
greater fiscal tightening is weighing on the nation's economy,
which many analysts expect to fall into recession this year.
    Hard-to-fix structural problems, such as low productivity,
poor infrastructure at home and high tax and labor costs are
widely cited as further barriers to growth among local
manufacturers.
    Production dropped in 11 of 24 industrial segments on a
monthly basis, with automobile manufacturing contributing the
most to the decline.
    Durable goods retreated 0.4 percent from January and 25.8
percent from February 2014 as heavier household debt loads and
higher interest rates sapped demand for big-ticket items.
    Production retreated 9.1 percent in February from a year
earlier, less than the median forecast for a 10.25
percent decline.
    IBGE revised January's production increase from December
down to 0.3 percent from a previously reported 2.0 percent.
January's decrease from a year earlier was revised to 5.1
percent from 5.2 percent.

 (Percent change)                Feb/Jan    Feb'15/Feb'14
 Capital goods                   -4.1       -25.7
 Intermediate goods              -0.1       -4.0
 Consumer goods                  -0.4       -13.4
     Durable consumer goods      -0.4       -25.8
     Semi-durable and            -0.5       -8.9
 non-durable consumer goods                 
 Industrial output               -0.9       -9.1
   

 (Reporting by Rodrigo Viga Gaier and Pedro Fonseca; Editing by
Chizu Nomiyama and Lisa Von Ahn)