Brazil: Economic activity expands at fastest pace in 6 months
September 14, 2011
In July, economic activity grew a seasonally adjusted 0.5% over the previous month, according to the Central Bank's monthly indicator for economic activity (IBC-Br, indice de Atividade Economica do Banco Central). The reading contrasted June's 0.3% contraction, but was in line with market expectations. In fact, July's economic activity expanded at the fastest pace since January. On an annual basis, economic activity expanded 1.7% in July, down from the 2.9% increase tallied in June. Consequently, the trend continues to point downwards, with annual average growth falling from 4.9% in June to 4.4% in July. The IBC-Br is highly correlated to the GDP series and thus represents a good proxy for economic growth.