BRASILIA (Reuters) - Economic activity in Brazil exceeded market expectations in November, official data showed on Thursday, adding to a string of stronger-than-anticipated performances despite the central bank's ongoing monetary tightening cycle.
The IBC-Br index, a leading indicator of gross domestic product (GDP), rose 0.1% in seasonally adjusted terms from October, while economists polled by Reuters had expected no change.
On a non-seasonally adjusted basis, the index - which incorporates proxies for output in agriculture, industry, and services, as well as tax data on production - climbed 4.1% compared to November 2023 and increased 3.6% over 12 months.
The positive performance came despite weaker-than-expected data in November for the service sector, the main driver of Brazil's economy, along with negative readings for retail sales and industrial output.
Finance Minister Fernando Haddad has stated that Latin America's largest economy likely expanded 3.6% in 2024, more than double the forecasts by private economists at the beginning of last year.
The expansion has been fueled by strong household consumption and rising investment amid a tight labor market.