Key facts
- Economic activity in Brazil rose 0.3% in August from July.
- Industry expanded 0.9% in August.
- The IBC-Br index was up 1.2% from a year earlier.
- The index rose 1.6% on a rolling 12-month basis through August.
Economic activity in Brazil increased by a seasonally adjusted 0.3% in August compared to the previous month, according to a central bank index released on Friday. This figure met the median forecast from a Reuters poll of economists. The expansion was primarily fueled by the industrial sector, which saw a 0.9% increase from July. On an unadjusted basis, the index showed a 1.2% rise from the same month a year earlier and a 1.6% increase over a rolling 12-month period ending in August. The central bank has indicated that a slowdown in economic activity is necessary for inflation to reach its 3% target. The bank projects Brazil's gross domestic product to grow by 1.8% this year, decelerating to 1.4% in 2027. Monetary policymakers are scheduled to convene in early November for their next interest rate decision, following five consecutive 25-basis-point cuts that brought the benchmark Selic rate to 13.75%.