Itau said the following in a recent note to clients:

“March data show that the industrial sector continued a downward adjustment in production during 1Q12. We believe that the incentives being implemented will accelerate growth in industrial activity ahead, which is essentially a precondition if GDP is to grow at higher rates in the next quarters. However, for April, there are still signs of poor vehicle sales and of a need to adjust inventories in the sector. This has tended to weigh negatively on industrial production in early 2Q12, making it more likely that we will see a slower-than-anticipated pickup.”

 

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