(Bloomberg) -- Brazil's recovery gained traction in June according to the central bank's main gauge of activity, as Latin America's biggest economy reopens as the vaccination campaign advances.
The bank's economic activity index, which is a proxy for gross domestic product, rose 1.14% on the month in June, more than the 0.55% median estimate in a Bloomberg survey, the bank reported on Friday. However, May's reading was revised down to -0.55% from -0.43% previously.
Brazil weathered a virus surge at the start of the second quarter, when local officials reimposed limits on commerce and hospitals were overwhelmed with patients. Analysts forecast faster growth in coming months, as the government seeks to increase social spending and the vaccination campaign gains speed. At the same time, activity is also pressuring above-target inflation.
Read more: Brazil's Consumer-Price Jump Risks Poisoning Inflation Views
For the second quarter, activity rose 0.12% from the previous three-month period. The index also rose 9.07% in June from a year earlier, the bank reported. The national statistics agency will publish the official second quarter GDP figures on Sept. 1.
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