Brazil industrial output drops unexpectedly

Brazilian industrial output fell unexpectedly in November as production of durable goods declined sharply, further reducing hopes of a recovery in the long-troubled sector.
Output at factories in mines fell 0.7 percent in November, statistics agency IBGE said Thursday, defying economist forecasts for a 0.5 percent gain.
Production fell in 11 of 24 industrial sectors, with food products down 3.4 percent and electric equipment dropping 2.8 percent. Durable goods fell 2.1 percent from October and 11 percent from November 2013.
The annual decline was mostly due to a sharp drop in automobile and home-appliance production. Both sectors had benefited from government tax breaks in recent years, although heavier household debt, declining consumer confidence, and higher interest rates have cut demand for expensive items.
In the first 11 months of 2014, Brazilian industry contracted 3.2 percent, IBGE said.