IBGE PPI Signals Mild Economic Downturn in Q2 2026

The Brazilian economy experienced a significant slowdown in the second quarter of 2026, as indicated by the FGV's PPI (Pronóstico da Produção Industrial) released on Monday. According to these data, economic activity increased only 0.3% compared to the first quarter. This performance represented a downturn from the previous month when the economy contracted 1.1%. Claudio Considera of FGV Ibre noted that these numbers confirm a weaker economic activity, signaling a slow growth scenario for the national economy. However, consumption by families did sustain the economy, increasing by 1.2% in the second quarter. The main concern is the Formação Bruta de Capital Fixo (FBCF), which had its lowest variation since the same period of the previous year, at just 1.3%. This indicator reflects a weak pace of investments in machinery and equipment, raising concerns about the future of the Brazilian economy.