Brazil: Economic activity increases at fastest pace in 17 months
October 11, 2012
In August, economic activity rose 1.0% 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 was above both the 0.5% increase observed in July and market expectations of a 0.9% rise. In fact, economic activity expanded at the fastest pace seen since March 2011. On an annual basis, economic activity expanded 2.7% in August, which was above the 2.3% increase observed in July. The trend stabilized, with annual average growth remaining unchanged at July's 1.2%. The IBC-Br is highly correlated to the GDP series and thus represents a good proxy for economic growth.