Economic activity has soft spot in Q3

Brazil''s economic activity started the third quarter in the red, with a slight fall of 0.09 percent on seasonally adjusted data, a result worse than expected and that underscores the difficulties for the resumption of a consistent recovery. The result of the Economic activity index of the Central Bank (IBC-Br), species of flag of GDP (gross domestic product), frustrated expectation of elevation of 0.25% of the index in the month, according to Reuters research.
Released this Monday (19/9) at BC, the IBC-Br incorporates projections for production in the service sector, industry and agriculture, as well as the impact of taxes on products.
In the month, the index performance was negatively affected by the retail sales, which dipped again in July, with retraction of 0.3% in June. Although the service sector has displayed a growth in volume of 0.7% and industrial production have also stayed in the positive surprises field with slight high 0,1%, the IBC-Br just closing the month in negative territory.
"On the other hand we start the third quarter with weak signal, but to some degree that was anticipated by industry data and even the retailers," said the Chief Economist of Gradual Investimentos, André Perfect.
"But the quarter ended July against the quarter immediately preceding is aiming smaller fall," added perfect, you can see a sign of the end of the slowdown in economy. He estimated that the GDP for the third quarter will suffer 0.3% retraction.