The Brazilian economy in August grew higher than expected by the retail and services industries. The recovery is still slow due to the instability resulting from the uncertainties about the presidential elections.
This week, the Central Bank's Economic Activity Index (IBC-Br) was disclosed, which acts as a kind of indicator for Gross Domestic Product (GDP). The IBC-Br increased 0.47% in August compared to July.
This performance marks the third consecutive month of increase and according to a Reuters’ survey is above the forecast. The IBC-Br in August also highlights the slowdown in the economy, as the index slowed down after a 3.45% increase in June - a result of the recovery after a sharp drop in the previous month due to the truck drivers' strike.
In comparison with August 2017, the IBC-Br was up 2.5% and, and for the 12-month period, it was up 1.5%, according to the Central Bank. In August, both retail sales and service volumes increased above expectations and had the best results for the month in several years with increases of 1.3% and 1.2%, respectively, according to IBGE data.