* IBC-Br index falls 0.12 percent in third quarter
* Index drops 0.01 percent in September from August
By Silvio Cascione
SAO PAULO, Nov 14 Brazil's economic activity
failed to grow in September and showed a decline in the third
quarter, central bank data showed on Thursday, the latest
evidence that a timid recovery boosted by rising government
spending was short-lived.
The central bank's IBC-Br economic activity index
stood largely unchanged in September from August,
with a decline of 0.01 percent in seasonally adjusted terms. The
median estimate in a Reuters survey of 21 analysts was for an
increase of 0.3 percent.
The index, a gauge of activity in the farming, industry and
services sectors, fell 0.12 percent in the third quarter,
compared with an increase of 0.84 percent between April and
The IBC-Br is seen as a proxy of gross domestic product
data, even though it failed to capture a strong rebound in
economic growth in the second quarter. Third-quarter
GDP data is due on Dec. 3.
Brazil's economy gained steam in the first half of this
year, escaping from a near-recession after President Dilma
Rousseff's government cut taxes, slashed interest rates and
boosted public spending. However, that stimulus has been partly
withdrawn as it fueled inflation and raised the threat of a
credit downgrade because of the spending spree's impact on
Economists in a weekly central bank poll expect Brazil's
economy to grow a median 2.5 percent in 2013 and 2.1 percent in
Over September 2012, the IBC-Br index rose a nonseasonally
adjusted 3.33 percent.