Brazil: Economic activity deteriorates in August
October 31, 2016
In August, economic activity contracted 0.9% 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 followed July’s revised 0.1% fall (previously reported: -0.1% month-on-month) and marked the worst reading since May 2015. The result was below market analysts’ expectations of a 0.7% drop.
On an annual basis, economic activity fell 2.7% in August, which was a notable improvement compared to July’s 5.2% fall. Meanwhile, the trend improved and the annual average variation in economic activity came in at minus 5.5%, up from July’s multi-year low of minus 5.7%.