Brazil: Economic activity remains flat in September
November 21, 2011
In September economic activity did not change 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 flat reading followed on August's 0.6% contraction. On an annual basis, economic activity expanded 1.2% in September, which was down from the 2.9% increase recorded in August and came in below market expectations of a 1.3% rise. Moreover, the reading represented the slowest pace of expansion in two years. The trend continued to point downwards, with annual average growth falling from 4.0% in August to 3.6% in September. The IBC-Br is highly correlated to the GDP series and thus represents a good proxy for economic growth.