UPDATE 1-Brazil's industrial output falls 0.6% in October, surprising analysts

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(adds details from IBGE report, context)

SAO PAULO, Dec 3 (Reuters) - Industrial production in Brazil fell 0.6% in October from September, government statistics agency IBGE said on Friday, marking a fifth consecutive monthly decrease.

The drop surprised analysts who had expected a 0.6% rise for output in Latin America's largest economy, according to the median estimate in a Reuters poll.

IBGE said the fall is mainly tied to a downturn in extractive industries, which are businesses that produce commodities like oil and iron. Food production also fell in the period, IBGE said.

Brazil's industrial output also slumped 7.8% from a year earlier in October, IBGE said.

Brazil, which is in a technical recession and is grappling with a surge in energy prices, has seen inflation surge and a steep rise in borrowing costs that affects companies and consumers. (Reporting by Ana Mano; Editing by Toby Chopra)

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