Brazilian Economic Activity Index down 2% in May
The Economic Activity Index (IBC-Br), an indicator from the Central Bank used to anticipate Gross Domestic Product (GDP) performance, noted a 2% decrease in May compared to the previous month.
The Central Bank published the data on July 17.
The reported decline was more significant than market expectations. Analyst consensus had predicted a stable index for the month.
The drop in the IBC-Br is the largest since a 3.6% contraction in March 2021.
After seasonal adjustment by the Central Bank, the Index in April had noted a 0.56% rise.
Comparatively, the IBC-Br for May indicates a 2.15% increase from the same month in the previous year.
The year-to-date index has risen by 3.61%, with a 3.43% increase over the past twelve months.
The IBC-Br, established by the Central Bank, functions as an early signal for GDP trends released by the Brazilian Institute of Geography and Statistics.
The IBC-Br also impacts the Selic, Brazil’s fundamental interest rate.
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