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Brazil’s Economic Activity Posts First Monthly Drop Since March

  • Central bank seen lifting rates by quarter-point next week
  • Economic activity fell 0.4% on month in July; est. was -0.7%
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Brazil’s economic activity fell less than expected in July, snapping a series of gains as central bankers are expected to mull the start of a cycle of interest rate hikes.

The central bank’s economic activity index, a proxy for gross domestic product, fell 0.4% from June, less than the -0.7% median estimate from analysts in a Bloomberg survey. From a year ago, the gauge gained 5.3%, according to a report published on Friday.