Brazil's industrial output rises less than expected in October

SAO PAULO, Dec 2 (Reuters) - Industrial production in Brazil rose less than expected in October from the previous month, government statistics agency IBGE said on Tuesday, as Latin America's largest economy shows signs of cooling amid high interest rates.

* Output was up 0.1% in October from September, IBGE said.

* The median estimate in a Reuters poll projected an increase of 0.4%.

* Production in October also retreated 0.5% from a year earlier, while markets expected a 0.2% growth.

* High borrowing costs have been weighing on the sector, with Brazil's interest rates currently at a near two-decade high of 15% as the central bank seeks to curb inflation.

* Production in October was up in three of the four main categories surveyed, but intermediate goods output posted a decline, according to IBGE.

* "This marks a sluggish start to the quarter," Pantheon Macroeconomics' chief Latin America economist, Andres Abadia, said.

* "Risks remain tilted to the downside amid tight financial conditions, a cooling labor market and softer domestic demand," he added.

(Reporting by Gabriel Araujo; Editing by Andrew Heavens)