Brazil: Economic activity shrinks in December
Latest reading: Economic activity—a proxy for GDP—declined 0.2% on a seasonally adjusted month-on-month basis in December, following a downwardly revised 0.6% increase in the prior month. December’s decline was softer than markets had anticipated.
Relative to the previous month’s figures, readings in December softened for the industrial sector (+0.3% on a seasonally adjusted month-on-month basis vs +0.6% in November) and the services sector (-0.3% vs +0.6% in November); the services sector accounts for roughly 60% of GDP. In contrast, the reading for the agricultural sector improved in December (+2.3% vs +0.1% in November).
In annual terms, economic activity rose 3.0% in December, following an upwardly revised 1.3% increase in the prior month.