Brazil's industrial output falls short of expectations in April

SAO PAULO, June 3 (Reuters) - Industrial production in Brazil rose 0.1% in April from March, government statistics agency IBGE said on Tuesday, below the 0.3% increase estimated in a Reuters poll.

April was the forth consecutive month of positive results to the Brazilian industry, despite pressures from a tight monetary policy with interest rates at the highest level in almost 20 years.

Compared to one year earlier, production retreated 0.3%, ending ten consecutive months of growth.

On the upside, extractive industries were the main contributor on April's monthly increase, while pharmochemical and pharmaceutical weighed the most on the downside, IBGE said.

Strong external demand, sector-specific recoveries and commodities exports have boosted Brazil's industrial gains in recent months, according to Andres Abadia, chief Latam economist at Pantheon Macroeconomics.

"Without (these factors), though, Brazil's industrial sector would be in far worse shape. High interest rates and weakening domestic demand continue to weigh heavily on activity," he said in a note to clients.