(Adds comments, background)
BRASILIA, Jan 5 Industrial output in Brazil rose
far less than expected in November as a drop in fuel production
offset a recovery for car factories, government data showed on
Production rose 0.2 percent in November from October
, below the market consensus for an increase of 2.0
percent, government statistics agency IBGE said.
Output in November retreated 1.1 percent from a year earlier
, missing expectations of a 0.45 percent rise from
economists in a Reuters poll.
Brazil's industrial output is down to 2008 levels after
three straight years of contractions due to high interest rates,
inflation and a slowdown in consumer demand.
The weaker-than-expected November results add to signs that
the industrial recovery forecast for this year will be very
mild. Economists in a central bank poll are penciling in 0.9
percent industrial growth in 2017 after a drop of more than 6
percent in 2016.
"The outlook for growth in the sector is becoming
increasingly difficult," said Thaís Zara, chief economist at Sao
Paulo-based consultancy Rosenberg & Associados.
Output grew in 13 of the 24 sectors that IBGE covers.
Industrial production slipped 0.1 percent in the quarter through
November from the prior three months, extending a negative
streak that started in July 2016.
Brazil's industrial woes probably worsened in December, as a
purchasing managers' index released on Monday hit a six-month
(Percent change) m-m y-y
Capital goods 2.5 1.1
Intermediate goods 0.5 -0.6
Consumer goods 0.1 -2.4
Durable consumer goods 4.0 9.0
Semi-durable and non-durable consumer -0.5 -4.8
Industrial output 0.2 -1.1
(Additional reporting by Camila Moreira; Editing by Catherine
Evans and Lisa Von Ahn)