Brazil's GDP Rises Unexpectedly In Q3

(RTTNews) - The Brazilian economy grew for the third straight quarter in the three months ending September, led by expansions in industry and services, according to figures released on Tuesday by the Brazilian Institute of Geography and Statistics, or IBGE.

Gross domestic product rose a seasonally adjusted 0.1 percent sequentially in the September quarter, slower than the 1.0 percent rise in the second quarter. In contrast, economists had expected a 0.2 percent fall.

Among sectors, output in the industrial and service sectors contributed positively to GDP, both rising by 0.6 percent compared to the previous quarter.

Meanwhile, the agriculture sector contracted 3.3 percent over the quarter, which was the first drop in activity after five quarters with positive rates.

On the expenditure side, household consumption grew 1.1 percent, and government consumption showed an increase of 0.5 percent.

Meanwhile, gross fixed capital formation dropped 2.5 percent. Exports climbed 3.0 percent, while imports dropped by 2.1 percent.

On a yearly basis, GDP growth moderated to 2.0 percent in the third quarter from 3.5 percent in the second quarter. That was just above the 1.9 percent rise expected by economists. 

Survey data released by S&P Global showed that the seasonally adjusted Brazil Services Business Activity Index rose marginally to 51.2 in November from 51.0 in October. A reading above 50 indicates expansion in the sector.

The service sector in Brazil indicated back-to-back expansions in both new business and output in November, amid resilient demand conditions. Firms expressed an optimistic view regarding the growth outlook and raised workforce numbers.