Consumer spending (-1.9 percent from -2.9 percent in Q4) and gross fixed capital formation (-3.7 percent from -5.4 percent) fell less. In contrast, public expenditure went down at a faster 1.3 percent (-0.1 percent in Q4) as the government of Michel Temer reduced fiscal spending. Exports went up 1.9 percent, following a 7.6 percent slump in Q1 as sales rose for oil, iron ore and soybeans. After declining for two years, imports jumped 9.8 percent, the most since the third quarter of 2013.
On a quarterly basis, the economy advanced 1 percent following a downwardly revised 0.5 percent drop in the previous period and in line with market expectations. It is the first expansion in 2 years, boosted by a jump in exports and a smaller drag from consumer spending.