Brazil: Activity returns to growth in June
The Brazilian economy ended the second quarter on a sweeter note: Activity returned to growth and posted a 0.6% month-on-month seasonally adjusted expansion in June. The upturn, which was an improvement from May’s whopping 2.1% monthly contraction, marginally overshot market expectations.
On an annual basis, economic activity growth eased to 2.1% in June, down from May’s 2.3% year-on-year increase. Accordingly, the trend pointed down, with annual average growth in economic activity coming in at 3.4% in June, down from May’s 3.5% reading.
Meanwhile, retail sales flatlined in seasonally adjusted month-on-month terms in June, improving from the 0.7% decline tallied in May. Conversely, industrial output contracted 0.6% month on month in seasonally adjusted terms in July, deteriorating from the prior month’s flat reading.