FX.co ★ Brazil Economic Activity Contracts in July

Brazil’s IBC-Br economic activity index declined 0.2% in July 2026 compared with June, extending the 0.6% drop recorded in June and coming in slightly below expectations for a 0.1% decrease. The downturn was mainly driven by a 1.2% contraction in the agriculture and livestock sector, which had grown 1% in the previous month. The industrial sector shrank 0.4%, while the taxes index fell 0.2% after a 1% decline in June. Excluding agriculture and livestock, the IBC-Br slipped 0.1%. On a year-on-year basis, overall economic activity increased 1.1%.