Brazil: Decline in economic activity softens in June
Latest reading: Economic activity—a proxy for GDP—declined 0.1% in month-on-month seasonally adjusted terms in June, easing from May’s 0.7% decrease. Still, June marked the second consecutive decline and undershot market projections of a timid increase.
Looking at the details of the release, the softer decline was due to both the agricultural and industrial sectors contracting at more moderate clips in June. Moreover, the services sector—which accounts for roughly 60% of GDP—clocked in a 0.1% rise following May’s flat reading.
On an annual basis, economic activity rose 1.4% in June, which was significantly below May’s 3.5% expansion and marked the worst result since March 2024. Accordingly, annual average economic activity growth fell to 3.9% in June (May: +4.1%), pointing to a worsening trend.