1st preliminary results of Economic Activity Indicator point to 0.6% economic growth in May

Industrial and service sector activities continue to be the hardest hit, having experienced significant drops, although they are now performing slightly better than in April, year-over-year
Economics
03 July 2020
1st preliminary results of Economic Activity Indicator point to 0.6% economic growth in May

The first preliminary results of Fundação Getulio Vargas’ Economic Activity Indicator (IAE-FGV) point to economic growth of 0.6% in May 2020, compared to April. This result shows a slight recovery following the sharp declines recorded in March and April. Despite this mild recovery, the economy is still far below its pre-COVID-19 level.

Industrial and service sector activities continue to be the hardest hit, having experienced significant drops, although they are now performing slightly better than in April, year-over-year. The biggest decreases in industry involve processing, followed by construction. When it comes to services, the sharpest drops are in commerce, other services and transport.

In the three months to May, the indicator points to a 10.1% decline, in relation to the three months ending in February, and an 8.8% decline, year-over-year.

IAE-FGV is an indicator that anticipates trends in the Brazilian economy based on the three main monthly activity surveys conducted by IBGE. The principal sources of information used to update the indicator are the Monthly Industrial Survey – Physical Production (PIM-PF); Monthly Commerce Survey (PMC); and Monthly Services Survey (PMS).

The complete study is available here.