Brazil Factory Output Remains Steady

Brazil’s industrial output remained steady in June, data showed, beating expectations for a small drop while underscoring that a tentative economic recovery remains fragile, Reuters reported. Industrial production was expected to drop 0.4% from May after seasonal adjustments, according to a Reuters poll. It was the third consecutive month in which manufacturers and miners outperformed market expectations. Production in June grew 0.5% from a year earlier, slowing from an increase of 4.1% in May. Output grew sequentially in 12 of the 24 sectors covered by IBGE. Automobile production fell 3.9%, paring back part of the strong performance at the start of the year. Food processing rose 4.5%, IBGE said. Brazil’s economy is expected to grow just 0.3% in 2017 after two years of deep recession, according to a weekly central bank poll of economists on Monday. Industrial output, which has fallen back to 2009 levels, is forecast to grow 0.8% in 2017.