Brazil's Industrial Output Down 0.9% in May

The central bank is forecasting GDP growth of 2.5% this year.

Brazil's weak industrial production slumped 0.9% in May from a month earlier, and 4.3% compared with May 2011, the Brazilian Institute of Geography and Statistics (IBGE) said on July 3.

It added that industrial output dropped a cumulative 3.4% over the first five months of the year and 1.8% over 12 months.

The biggest decreases in May were in the car sector, down 4.5%, and in the food sector, down 3.4%, IBGE noted. Last year, the industry grew a mere 0.3% compared with 10.5% in 2010.

The Brazilian government is hoping that its recent measures to boost industry and consumption will produce better results in the second half of this year.

The central bank meanwhile is forecasting GDP growth of 2.5% this year, but market analysts are banking on only 2.05 percent.

Copyright Agence France-Presse, 2012

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