Brazil: Economic activity weakens in August
October 29, 2014
In August, economic activity rose 0.3% 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 marked a deterioration from the 1.5% expansion tallied in July. The August result mirrored market expectations.
On an annual basis, economic activity contracted 1.3% in August, which was a deterioration from the 0.2% drop tallied in July. Meanwhile, annual average growth fell from 1.2% in July to 0.9% in August, which is the lowest level since December 2012. Brazil’s economy is in a technical recession and the downward trend in economic activity points to a struggling recovery.