BRAZIL: Economic Activity Index Rises More Than Expected In July

(RTTNews) - The Brazilian economic activity index (IBC-Br), which acts as a proxy for the country's GDP, rose 0.41% in July compared to June, to 135.62 points, the highest level in this year. Analysts expected a more timid increase of 0.18%.

Compared to July 2016, the index grew 1.41%, also surpassing the 1% rise forecast.

"The positive result of the index reinforces our expectation of a slight GDP growth in the third quarter. We hope the economic activity to increase in the fourth quarter, in line with our 0.7% growth forecast for the 2017 GDP," said the economic team of the Brazilian bank Bradesco in a report.

Analysts from Rosenberg Associados, which also expects a 0.7% GDP growth this year, stated that the economic activity index increased 2.4% from its most recent low, in December 2016.

"That is equivalent to an average 0.35% monthly growth rate," they added.

Should the positive momentum continue in the following months, the IBC-Br will probably post a 1.6% rise in 2017, according to Rosenberg Associados.