Yahoo Finance Brazil Industrial Output Falls for Second Straight Month
(Bloomberg) -- Brazil’s industrial output fell in May for a second straight month as central bankers signal they are in no rush to resume rate cuts, and tight credit conditions are likely to persist.
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Production fell 0.9% from the month prior, less than the median forecast for a decline of 1.4% in a Bloomberg survey of analysts. The monthly contraction recorded in April was revised to -0.8%. From a year earlier, industry fell 1%, the national statistics agency reported on Wednesday.
Policymakers led by Roberto Campos Neto halted their monetary easing campaign last month, leaving the benchmark rate at 10.5%. Fiscal woes and rising inflation expectations have led economists to forecast borrowing costs will remain steady for some time, cutting short hopes of looser credit conditions among manufacturers and credit-driven industries.
May’s data could begin to reflect the impact of heavy rains that left large parts of Brazil’s southern cities underwater. More than 94% of all economic activity in the region was affected by the floods, impacting as much as 8% of the country’s formal jobs, according to central bank’s studies.
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