UPDATE 1-Strike curbs Brazil's Q2 GDP growth as slow recovery continues

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BRASILIA, Aug 31 (Reuters) - The Brazilian economy accelerated slightly in the second quarter despite a nationwide truckers' strike, as a slow and uneven recovery rumbled on ahead of presidential elections in October.

Brazil's gross domestic product (GDP) grew 0.2 percent from the first quarter and 1.0 percent from a year before, government statistics agency IBGE said on Friday.

Economists had forecast growth rates of 0.1 percent and 1.1 percent, respectively.

The data followed a downwardly revised 0.1 percent expansion in the first quarter from the previous three months, compared to the previously published 0.4 percent.

It was nevertheless the fastest expansion in Brazil since the third quarter of 2017.

Truckers protesting high diesel prices blocked major roadways in the final weeks of May, curbing inputs to several industries and driving product shortages across the board.

That contributed to the first decline in capital expenditure after four quarters of growth even as interest rates remained at all-time lows. The industrial sector also contracted, snapping three straight quarters of growth.

Lower investment sounds an ominous tone for an already sluggish bounceback from Brazil's deepest recession in decades as the presidential campaign kicks off with no clear outcome in sight.

Economists widely agree that bolstering Brazil's growth outlook hinges on cutting government spending and curtailing public debt, a scenario that is looking increasingly uncertain as voter intention polls continue to paint a blurry picture. (Reporting by Bruno Federowski Editing by Daniel Flynn and Paul Simao)