Brazil: Economic activity growth deteriorates in October
Latest reading: Economic activity expanded for a third consecutive month in October, increasing 0.1% month on month in seasonally adjusted terms in October (September: +0.9% mom), beating market expectations for the fifth consecutive month.
On an annual basis, economic activity rose 7.3% in October, which was notably better than September’s upwardly revised 5.3% expansion and marking the best result since June 2021. Accordingly, annual average economic activity growth rose to 3.4% in October (September: +3.0%), which marked an over one-year high.
Looking at sectoral data, services output growth—which accounts for roughly 70% of GDP—inched up to 1.1% month on month in seasonally adjusted terms (September: +1.0% mom). Conversely, retail sales growth eased to 0.4% in October (September: +0.6% mom). In the same month, industrial output expanded 1.0% (September: +0.2% mom), although in November it swung to a 0.2% month-on-month contraction.