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SAO PAULO (Reuters) - Brazil's industrial production fell more than expected in July, losing steam after a stellar performance in the previous month, government statistics agency IBGE said on Wednesday.
Industrial production in Latin America's largest economy fell 1.4% in July from June <BRIO=ECI>. Economists polled by Reuters projected a decline of 0.9%.
"Negative industry performance in July comes after intense growth in the previous month," IBGE survey manager Andre Macedo said. In June, output had increased 4.3% from May, revised data from IBGE showed on Wednesday, breaking a two-month negative streak.
According to Macedo, some important industrial plants also halted their production process in July. The main negative influence came from food products, with production down 3.8% on a monthly basis.
"There was a drop in sugar production, impacted by the effects of a drought in the country's center-south region, as well as in beef and soy products. These items were the ones that contributed most negatively this month," Macedo said.
Still, industrial production jumped 6.1% in July from a year earlier <BRIOY=ECI>, IBGE said, citing "spread positive results" and a low 2023 comparison base. Economists polled by Reuters were expecting an annual increase of 6.3%.
With July's figures, Brazil's industrial sector is now 1.4% above pre-pandemic levels but 15.5% below its record high reached in 2011.
(Reporting by Luana Maria Benedito; Editing by Mark Porter)
