Brazil industrial output drops 0.2% in November, marking sixth…

By Marcela Ayres

BRASILIA, Jan 6 (Reuters) – Industrial output in Brazil slipped 0.2% in November, against forecasts of slight growth, marking a sixth consecutive monthly fall and highlighting persistent weakness in the sector.

Brazil, which is in a technical recession and is struggling with double digit inflation, has seen a steep rise in borrowing costs that affects companies and consumers.

The median estimate for industrial output in November, in a Reuters poll of economists, was for a rise of 0.1%.

Government statistics agency IBGE said on Thursday that the year-on-year decline in November was 4.4%, Ankara Oto Kurtarma more than the 4.2% fall forecast in a Reuters poll.

Industrial output is still down 4.3% from the February 2020 level, before the COVID-19 pandemic began to severely affect economic activity, IBGE said.

Among the 26 sectors surveyed, 12 registered a decline in production in November, with rubber and plastic products (-4.8%) and metallurgy (-3.0%) among the biggest losses.

On the other hand, auto and auto parts output rose 2.9%, the first positive result since April 2021, IBGE said.

Among the four broad categories surveyed, capital goods production fell 3.0% on the month, while durable goods increased 0.5%.Nondurable goods and intermediate goods showed stability. (Reporting by Marcela Ayres; Editing by Alexander Smith)