Brazilian industrial output contracted less than expected in July, suggesting the outlook for a slow and steady recovery remained intact despite disruptions from a countrywide truckers strike earlier in the year. Output fell 0.2 percent from June, government statistics agency IBGE said on Tuesday, compared with the median forecast for a 1.0 percent decline, according to a Reuters poll of economists.
The industrial sector, which accounts for about 20 percent of gross domestic product (GDP), slumped in May as truckers protesting high diesel prices blocked major roadways, but bounced back in June as transportation flows normalized.
The July reading would indicate the industry's recovery from the deepest recession in decades remained sluggish but on track, with 16 of the 26 segments tracked by IBGE expanding in the month.
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