Economic Activity Indicator points to economic growth of 1.4% in July
FGV’s Economic Activity Indicator points to economic growth of 1.4% in July, compared to June, and a 4.4% decline in the three months to July, compared to the three months to April. Both rates are seasonally adjusted.
Year-over-year, economic activity shrank 6.6% in July and 9.1% in the three months to July. Although these results are very negative, they are better than the changes observed in June. The rate in the 12 months to July is minus 2.9% and the result from January to July is minus 5.9%.
The Economic Activity Indicator anticipates trends in the Brazilian economy based on the three main monthly activity surveys conducted by the national statistics agency, IBGE. The principal sources of information used to update the indicator are the Monthly Industrial Survey – Physical Production (PIM-PF), Monthly Trade Survey (PMC) and Monthly Services Survey (PMS). The indicator’s information has been adapted to the pandemic, in line with some principles formulated by IBGE in reporting the second-quarter national accounts.
This month, the Economic Activity Indicator’s results will be publicly disclosed for the last time. As of October, the index will once more become an exclusively private product.
The complete study is available here.