Brazil industry expands in 2017, first in four years

Brazil industry expands in 2017, first in four years

Chamber Articles Category: Economic News Post Date: 02/01/18 Source: Reuters By: Bruno Federowski
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Brazil's industrial output expanded in 2017 for the first year in four due to a strong pickup in auto production, suggesting manufacturers kicked off the new year on a stronger footing.

Industrial output rose 2.5 percent last year from 2016, official statistics agency IBGE said on Thursday, the largest yearly increase since 2010.

Production grew 2.8 percent in December from November, surpassing even the top estimate in a Reuters poll of economists. The median forecast was a 1.3 percent increase.

The outlook for Brazilian manufacturers has turned favorable as borrowing costs fall and growth in Latin America's largest economy looks set to shift into a higher gear this year.

Brazil's deepest recession in decades left industrial companies grappling with high debt loads and idle capacity, but booming car exports brightened their fortunes last year. That trend looks set to continue in 2018. Carmakers forecast another strong year of production, while record-low interest rates reduce funding costs and cheapen investments. Read Full Article