Output from Brazilian factories and mines grew by a seasonally adjusted 0.5 percent in November from the previous month, when it remained steady, according to the median forecast of 18 economists.

Compared with the same period a year earlier, industrial output is expected to have dropped 4 percent, worse than a 3.6 percent fall in October, according to the median of 13 forecasts.

Brazil's statistics agency, IBGE, will release the November industrial output report at 9 a.m. (0600 ET) on Thursday.

Industry has been particularly vulnerable to Brazil's broader economic slowdown in recent years. Weaker consumer demand and stubborn inflation compounded a string of long-standing problems, including high taxes and a scarcity of skilled labour, for which economists see no easy short-term fix.

"Industrial output has been declining since 2011, and for many sectors this adjustment will keep going as inventories remain high, demand shrinks and government stimulus is scaled back," said Gustav Gorski, chief economist at asset management firm Quantitas, in Porto Alegre, Brazil.

A survey of purchasing managers on Friday hinted at a slight pick-up in manufacturing activity in December , ending a three-month contraction. The HSBC Purchasing Managers' Index rose to a seasonally adjusted 50.2 from 48.7 in November. The result, though, failed to instil confidence among economists.

"Business confidence remains very low. Besides that, the auto sector keeps showing bad signals: media reports indicate record layoffs and collective vacations, which will weigh in December and January," Marco Maciel, chief economist at Banco Pine, wrote in a research note.

Forecasts for the monthly result ranged from an increase of 1.4 percent to a decline of 1.5 percent, while estimates for the year-over-year decline ranged from 3.3 percent to 4.9 percent.

(Editing by Alan Crosby)

By Silvio Cascione