The Bank of Portugal indicators once again indicate a slowdown in economic activity.
The daily indicators of the economic activity of the Bank of Portugal indicate that the pace of recovery of the Portuguese economy lost momentum in early June.
“During the week ending June 6, the Daily Economic Activity Index (DEI) and the corresponding two-year interest rate declined compared to the previous week,” this is a report released by regulators this Friday.
The weekly average change centered on June 3 was 19.8% year-on-year, which was lower than the 22.7% of the week centered on May 25.
DEI synthesizes a set of quantitative information with daily frequency, such as road traffic of heavy commercial vehicles on highways, electricity and natural gas consumption, cargo and mail unloading at national airports, and credit card consumption of residents and non-residents in Portugal. Therefore, it can map the evolution of the country’s economic activity in real time-these are so-called high-frequency indicators.
Since the decline was very significant during the first delivery, in the spring of last year, the Bank of Portugal recalculated the indicator to smooth out these changes and created a new series. “In order to reduce the impact of this very significant base effect on economic analysis, a biennial rate was calculated, which corresponds to the DEI change rate accumulated for the same number of days for two consecutive years,” said the supervisor.
Judging from this biennial rate, the year-on-year change has entered a negative region. In terms of the weekly moving average, centered on May 6, the year-on-year change was -0.9%, compared with 0.8% in the previous week.
The next version is scheduled to be released on June 17.