Brazilian industrial production rose 0.2% in October against the previous month and a robust 5.3% against October of 2016, the Brazilian Census Bureau (IBGE) said Tuesday. It was the second month in a row of month-on-month growth. The increase in industrial output was led by motor vehicles, capital goods and consumer goods. The rise in capital goods production signals an increase in investment by manufacturers, economists said. The rise in motor vehicle production is due partly to exports and partly to lower domestic interest rates. Lower rates make it easier for consumers to purchase big-ticket items. IBGE economists noted that the advance in industrial production was broad, indicating rising business confidence and underpinning ideas that Brazil’s economy is headed for a sustainable recovery.
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