UPDATE 1 — Brazil services output falls in August, missing forecasts

(Recasts with further data, context in the bullets) Brazil's services sector activity contracted 0.1% in August from the previous month, data from statistics agency IBGE showed on Wednesday, adding to signs of a slowdown in Latin America's largest economy. The monthly reading missed the 0.4% increase expected by economists in a Reuters poll Three of the five categories tracked by IBGE posted declines in the month The sector, which accounts for about 70% of Brazil's economy, has largely stagnated in recent months Central bank policymakers, who in September cut the benchmark interest rate for a fifth straight meeting to 13.75%, will meet again on November 3-4 On an annual basis, services output grew 0.6%, well below economists' expectations for a 1.1% increase (Reporting by Isabel Teles; Editing by Gabriel Araujo) ((isabel.teles@thomsonreuters.com)