Brazil Economic Activity Contracts in July

Brazil’s IBC-Br economic activity index fell 0.2% in July 2026 from June, following a 0.6% decline in June and slightly below forecasts for a 0.1% decrease. The decline was driven by a 1.2% contraction in the agriculture and livestock sector, following a 1% increase in the previous month. The industrial sector contracted 0.4%, while the taxes index fell 0.2%, after declining 1% in June. Excluding agriculture and livestock, the IBC-Br fell 0.1%. On an annual basis, economic activity expanded 1.1%.

Brazil’s IBC-Br economic activity index fell 0.6% in June 2026 from May, reversing a 0.1% gain in the prior month and slightly below forecasts for a 0.5% drop. The decline was driven by a 1.4% contraction in the industrial sector following a 0.4% increase in May. Services activity also fell 0.5% after rising 0.1% in the previous month. The taxes index declined 1% following a 0.1% increase. Meanwhile, the agriculture and livestock sector rebounded 1% after falling 1% in May. Excluding agriculture and livestock, the IBC-Br fell 0.9% in June. On an annual basis, economic activity expanded 2.4%. The IBC-Br rose 0.2% quarter-on-quarter in Q2, bringing growth over the past 12 months to 1.5%.

Brazil’s IBC-Br economic activity index rose 0.1% month-over-month in May 2026, easing from a 0.5% increase in the previous month but slightly above forecasts for a flat reading. Industrial activity increased 0.4%, matching April's pace, while services rose 0.1% after a 0.3% increase in the previous month. Likewise, the taxes index advanced 0.1% following a 0.3% rise in April. Meanwhile, the agriculture and livestock sector contracted 1.0% after posting a flat reading in April. Excluding agriculture and livestock, the IBC-Br rose 0.2% in May.