Brazil Industry Powers to Seventh Straight Gain on Capital Goods

• Brazil’s industrial production rose for the seventh straight month on a surge in capital goods, adding to signs of a gradual improvement in Latin America’s largest economy.
• Output rose 1.2% in November from the month prior, less than the 1.4% median estimate from analysts in a Bloomberg survey. From a year ago, production increased 2.8%, the National Statistics agency reported on Friday.
• Brazil’s industry has gotten a boost from record-low interest rates, a weak currency, and emergency government spending against the coronavirus. Those factors have helped propel sector confidence close to pre-pandemic levels despite an uneven recovery. Going forward, production faces headwinds including rising virus cases, as well as the government’s move to reduce stimulus.

(Source: Bloomberg)