The index of economic activity in Brazil compiled by the central bank was 1.2 percent higher in January than a year earlier, Agência Brasil reports.

The news agency quotes the central bank as saying the economic activity index was 0.56 percent lower in January than in December.

Reuters news agency reports that economists had forecast a bigger monthly decline.

Brazilian gross domestic product grew by 1.0 percent last year, having shrunk by over 3.0 percent in each of the preceding two years.