Brazil's economic activity started the year with a larger-than-expected contraction in January, according to data from the Central Bank, in a month marked mainly by losses in industry that reinforce the perception of weak growth at the beginning of 2019.
The Central Bank's economic activity index (IBC-Br), a kind of indicator of the Gross Domestic Product (GDP), fell by 0,41% in January compared to the previous month, the BC reported on Monday (18.3.2019). In December, the index rose by 0,21%.
Compared to January 2017, the IBC-Br showed growth of 0,79% and, in the accumulated 12 months, it had an increase of 1,00%, according to observed figures.
"This result and other previously released indicators suggest a more gradual recovery of economic activity than initially expected," said Bradesco.
The negative outcome in January was for industry, where production fell by 0,8% compared to the previous month, the weakest result in four months.
The volume of services also surprised by falling in the month, with a 0,3% drop in volume compared to December.
Only the retail sector posted gains at the start of the year, with sales rising 0,4% in January compared with the previous month, better than expected.
In 2018, Brazil's Gross Domestic Product (GDP) grew by 1,1%, but the pace slowed at the end of the year and grew by 0,1% in the fourth quarter compared to the previous three months.
The survey carried out by the Central Bank on a hundred economists shows that the expectation for activity this year was reduced in the last survey, with GDP growing by 2,01%, from the 2,28% previously estimated.
Source: Reuters
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