Brazil: Economic activity swings back to contraction in July
September 23, 2016
In July, economic activity contracted 0.1% 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 result contrasted June’s revised 0.4% expansion (previously reported: +0.2% month-on-month). The result was below market analysts’ expectations of a 0.2% expansion.
On an annual basis, economic activity fell 5.2%, which was a stark deterioration compared to June’s 2.9% fall. Meanwhile, the trend stabilized and the annual average variation in economic activity came in at June’s minus 5.6%, a multi-year low.