Brazil’s IBC-Br economic activity index fell 0.6% in June from the previous month on a seasonally adjusted basis, a smaller drop than the 0.53% contraction expected by economists polled by Reuters. The central bank indicator also showed Latin America’s largest economy expanded 0.2% in the second quarter from the prior three months, slowing markedly from 1.1% growth in the first quarter. Quarterly growth was driven mainly by industry, which rose 0.5%, while agriculture increased 0.3% and services, the backbone of the economy, slipped 0.1%. Taxes linked to production rose 0.1%. The weaker second-quarter performance had been widely anticipated as the effects of earlier government support measures faded and restrictive borrowing costs continued to weigh, even after Brazil’s central bank began easing in March. Rates remain at 14%, among the highest in real terms globally, while inflation stood at 4.44% in the 12 months through July, above the official 3% target. Official GDP data is due from IBGE on September 1.