Brazil’s IBC-Br economic activity index fell 0.2% in July 2026 from the previous month, compared with economists’ expectations for a 0.1% contraction. The result marked a second consecutive monthly decline after June’s drop was revised to 0.9% from the previously reported 0.6%. Agriculture was the main drag, falling 1.2%, while industry contracted 0.4% and services were flat. The taxes index fell 0.2%, and activity excluding agriculture and livestock decreased 0.1%. On an annual basis, the index rose 1.1%. Brazil’s economy has been cooling as elevated borrowing costs weigh on activity. The central bank has cut its benchmark rate by 25 basis points at each of its last four meetings to 14%, though real rates remain among the world’s highest. Policymakers were due to announce their next decision later Wednesday, with economists forecasting another 25-basis-point reduction to 13.75%. Andres Abadia, Pantheon Macroeconomics’ chief Latin America economist, said weaker growth supported lower rates while inflation argued for gradual easing.