Brazil: Economic activity swings to contraction in August
October 16, 2015
In August, economic activity fell 0.8% 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 adeterioration from July’s flat reading and a more pronounced decline than market expectations of a 0.6% contraction.
On an annual basis, economic activity plummeted 4.5%, which was a deterioration from July’s 4.3% contraction. Meanwhile, annual average growth edged down further from July’s minus 1.9% to minus 2.2%, which continued to mark the worst result since November 2009.