Brazil services activity defies forecasts, steadies in June
EWZ•Economists had expected a decline
Services activity defied expectations by economists in a Reuters poll for a 0.2% decline, as high interest rates have weighed on economic activity.
On an annual basis, services output grew 2%, above economists' expectations for a 1.4% increase.
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Four out of five groups surveyed posted declines in June, IBGE said, but were offset by gains in information and communication.
JPMorgan analysts said the reading was more resilient than suggested by its traditional models, reducing downside risks to growth and supporting its forecast for annualized second-quarter GDP expansion of about 2%.
Brazil's central bank cut its benchmark interest rate by 25 basis points for a fourth straight meeting to 14% earlier this month, leaving its next steps open.
Brazil services activity holds steady in June
Brazil's services activity beat expectations in June, coming in unchanged from the previous month, data from statistics agency IBGE showed on Wednesday.
Services activity in Latin America's largest economy was flat in June, compared with May, after a decline in the previous month.
