Brazil: Economic activity contracts at sharpest pace since March 2021 in January
Economic activity decreased 1.0% in month-on-month seasonally-adjusted terms in January, which contrasted December’s 0.3% increase and marked the first decline in activity in four months. Moreover, the print was weakest since March 2021 and came in below market expectations of a 0.3% fall.
On an annual basis, economic activity recorded zero growth in January (December: +1.7% yoy). Meanwhile, the trend improved slightly, with the annual average growth of economic activity coming in at 4.7% in January, up from December’s 4.6% reading.