Brazil: Economic activity stalls in May
July 12, 2012
In May, economic activity was flat 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 reading was below the 0.1% increase observed in April but came in above market expectations of a 0.4% decline. On an annual basis, economic activity rose 1.1% in May, which was above the flat reading observed in April and market expectations of a 0.2% rise. Nevertheless, the trend continues to point downwards, with annual average growth falling from 1.6% in April to 1.4% in May. The IBC-Br is highly correlated to the GDP series and thus represents a good proxy for economic growth.