Brazil: Economic activity contracts in May
July 17, 2014
In May, economic activity fell 0.2% 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 revised flat reading tallied in April (previously reported: +0.1% month-on-month). The result came in slightly above market expectations of activity dropping a stronger 0.4%.
On an annual basis, economic activity contracted 0.2% in May, which was up from the 2.3% drop tallied in April. Meanwhile, annual average growth fell from 2.2% in April to 1.9% in May, which is the lowest level since April 2013.