RIO DE JANEIRO, Oct. 2 (Xinhua) -- Industrial production in Brazil declined 0.3 percent in August compared to the previous month, marking the second consecutive monthly decline, the Brazilian Institute of Geography and Statistics (IBGE) said Tuesday.
The August numbers show the difficulty the sector is having in overcoming the effects of the 2015-2016 economic crisis, the country's worst ever recession, with GDP falling 7 percent according to the IBGE report.
Compared to August 2017, industrial production grew 2 percent, the third positive result in the year-on-year comparison, IBGE said.
The year-to-date cumulative industrial growth registered 2.5 percent, while the previous 12 months ending in August saw growth of 3.1 percent.
In August, 14 of the 26 industrial sectors saw a contraction, including oil byproducts and biofuels, which shrank 5.7 percent due to a paralysis in several units.
High unemployment and low confidence among business owners along with political uncertainty have put the brakes on industrial growth, which in turn impacts economic growth.
After seeing 1 percent growth in 2017, gross domestic product was initially expected to grow nearly 3 percent in 2018. However, Brazilian financial analysts have since downgraded the forecast to 1.35 percent, while the government is projecting 1.6 percent growth.
