Brazil's industrial output falls more than expected in December

SAO PAULO, Feb 3 (Reuters) - Industrial production in Brazil fell more than expected in December from November, government statistics agency IBGE said on Tuesday, as high interest rates weigh on activity in Latin America's largest economy.

• Production dropped 1.2% in December, IBGE said.

• The median estimate in a Reuters poll projected a 0.7% decline.

• The result marked the sharpest fall since July 2024.

• Output was down in all four main categories surveyed in December, according to IBGE.

• Compared to a year earlier, production in December grew 0.4%, while economists had expected a 1.1% increase.

HIGH INTEREST RATES

• The slower growth in the sector is closely linked to a more restrictive monetary policy, curbing investment and consumption, IBGE research manager Andre Macedo said.

• Brazil's central bank has maintained interest rates near a two‑decade high of 15% in a bid to tame persistent inflation.