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Brazil's Industrial Recovery Likely To Continue Over Coming Quarters

Brazil's industrial recovery likely to continue over the coming quarters of this year, as the latest fall in January was largely payback for an especially strong outturn in December, Edward Glossop, an economist at Capital Economics, said.

Industrial production dropped 2.4 percent on month in January, reversing 3.1 percent gain in December, official data showed on March 6. Nonetheless, annual growth in production reached a four-and-a-half year high.

"Indeed, the data from month-to-month are volatile, and a drop in January was always likely following December's surge," Glossop pointed out.

Accordingly, we are not concerned about a renewed downturn in production and leading indicators suggest that January's drop will probably be a blip, the economist said.

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