Brazil: Economic activity contracts in May
July 14, 2017
In May, economic activity fell 0.5% from 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 result contrasted April’s revised 0.1% increase (previously reported: +0.3% month-on-month) and surprised market analysts, who had expected a 0.5% increase.
On an annual basis, economic activity rose 1.4% in May, which contrasted April’s 1.7% decrease. Meanwhile, the trend improved and the annual average variation in economic activity came in at minus 2.2%, which was up from April’s minus 2.8%.