Brazil's industrial downturn probably worsened in May

BRASILIA (Reuters) - Industrial output in Brazil probably fell in May at the quickest annual pace in nearly six years, a Reuters poll showed on Tuesday, adding to signs of a painful recession in Latin America's largest economy.

Output from Brazilian factories and mines was seen shrinking by 10.2 percent from May 2014 , the steepest drop since June 2009, according to the median forecast of 21 economists. Industrial output fell 7.6 percent in April versus a year earlier.

May industrial output was seen falling a seasonally adjusted 0.6 percent against April of this year, the median of 25 estimates showed, after falling 1.2 percent in April versus the preceding month.

Government statistics agency IBGE will release the May industrial output report at 9 a.m. on Thursday.

The decline in Brazilian manufacturing has weighed on the rest of the economy. Industrialists have struggled with high inflation, rising interest rates, government spending cuts and weakening consumer demand.

Brazil's gross domestic product is expected to shrink 1.5 percent this year, according to market forecasts compiled by the central bank.

There were abundant signs of sliding industrial output in May, according to economists at Credit Suisse. Idle capacity increased about 6 percent, road traffic declined 7 percent, and car output fell about 3 percent, they noted in a report.

Economists see no signs of recovery either. Brazilian industrial output is on track to drop 4 percent this year compared with 2014, the central bank's poll of analysts showed.

The May versus April estimates for industrial output ranged from an increase of 0.2 percent to a drop of 1.2 percent, while those for the year-over-year decline ranged from 6.8 percent to 12.0 percent.

(Reporting by Silvio Cascione Editing by W Simon)