Brazil: Contraction in economic activity worsens in June
August 19, 2014
In June, economic activity fell 1.5% over the previous month in seasonally-adjusted terms, according to the Central Bank’s monthly indicator for economic activity (IBC-Br, Indice de Atividade Economica do Banco Central). The figure marked a deterioration over the 0.8% drop tallied in May and represented the sharpest drop since May 2013. The result came in slightly below market expectations of economic activity dropping a softer 1.4%.
On an annual basis, economic activity contracted 2.1% in June, which was well below the 0.2% drop tallied in May. Meanwhile, annual average growth fell from 1.9% in May to 1.5% in June, which is the lowest level since March 2013.