Brazil economic activity index jumps 0.69 in Sept

Saturday, 20 November 2010 00:01 -     - {{hitsCtrl.values.hits}}

BRASILIA, (Reuters) - Economic activity in Brazil rose at a solid pace in September but the annual growth rate reinforced the view the economy was settling into a more sustainable path in the second half of the year.

The central bank’s IBC-Br Brazilian economic activity index BRIBC=ECI rose 0.69 percent in September from August, after the index remained unchanged in the previous month.

But activity grew 6.12 percent in September compared with a year earlier, following August’s previously reported 6.43 percent rise, by the same comparison.

Latin America’s largest economy saw its fastest annual growth in at least 14 years in the first three months of the year but it slowed slightly in the second quarter.

Economists in a weekly central bank survey are expecting the economy will end the year with 7.6 percent growth, after expanding at around 9 percent year-on-year in the first two quarters of 2010.

The data could ease pressure on the central bank for higher interest rates. The bank has kept a benign inflation outlook even as inflation expectations grow and there are signs that price pressures are picking up.

The activity index is compiled by the central bank and comes ahead of the quarterly gross domestic product numbers released by the government’s statistics agency IBGE.