According to the Financial Times:

Brazil’s economy is set for a slowdown, with industrial production contracting in August as domestic manufacturers struggle with rising interest rates, a strong currency and a weakening global economy.

Goldman Sachs said it has revised its forecast for Brazil gross domestic product growth to 3.5 per cent this year from 3.7 per cent, which would be less than half that of 2010, when Latin America’s largest economy expanded at an Asia-like rate of 7.5 per cent.
“We have the external drivers turning less friendly and that could reinforce what was already a moderation trend,” said Alberto Ramos, economist with Goldman Sachs. “They [Brazil] cannot defy gravity. They are part of the global economy.”
 
And Bloomberg wrote:

The slowdown in global demand was the principal reason for the drop in industrial production, especially in the intermediary goods segment, said Flavio Serrano, an economist at Espirito Santo Investment Bank in Sao Paulo.

Production of capital goods, a barometer of investment, rose 0.9 percent in August, while output of consumer products fell 1.3 percent, today’s report said.

“The currency isn’t going to save the domestic industry because of a lack of global impulse,” Serrano said.

President Dilma Rousseff gave tax cuts to some manufacturers this year and raised levies on imports after a surge in the real made Brazilian exports less competitive. An 18 percent decline in the real against the dollar since the end of July hasn’t yet given relief for these companies as the economy slows in Brazil and abroad, said Ures Folchini, head of fixed income at Banco West LB do Brasil SA.

“The economy is decelerating at the margin,” said Folchini in a telephone interview from Sao Paulo. “The currency drop came so quickly and it takes a while for businessmen to react and reassess whether to buy locally.”
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