Brazil's Economic Activity Resumes Growth In September, But Below Expectations

• Economic activity in Brazil resumed expansion in September, though below expectations, still ending the quarter with positive data, according to information provided by the Central Bank.
• The Brazil IBC-Br economic activity index, a leading indicator of gross domestic product, rose a seasonally adjusted 0.05% in September from the month before, less than the 0.20% increase expected in a Reuters poll with economists. Nevertheless, the rise was enough to guarantee a seasonally adjusted 1.36% expansion for the economy in the third quarter, according to central bank figures.
• This would be an increase from the estimated 1.2% in Q2 2022. However, economists were expecting a slowdown in Latin America's largest economy from the second half, owing to the central bank's aggressive monetary policy cycle to tame inflation.
• Still, the government's official expectation is for the economy to rise by 2.7% this year, driven by higher private investment, resilient service activity and an improved job market.

(Source: Reuters)