The official index of economic activity in Brazil was 0.5 percent higher in June than the month before, indicating that the economy is recovering from its slump, Reuters reports.

The news agency says the market had expected a rise of 0.2 percent.

The report, citing an announcement by the Brazilian central bank, says the compilers of the index of economic activity have revised the fall in May to 0.37 percent from 0.51 percent.

A recent series of reductions in interest rates is likely to stimulate the Brazilian economy, Reuters says.