Credit recovery in Brazil for the period from January through July declined 1.8% compared to the year-ago period, according to data from research credit firm Boa Vista SCPC.

In the 12 months through July, the credit recovery index, which is derived from the number of removals from the delinquency records in the firm's database, fell 1.7% year over year.

For July alone, credit recovery dropped 6.0% from July 2016 and decreased 6.4% from June.

Although the scenarios differ in each region of Brazil, Boa Vista noted that the country's credit recovery average starts to show a downward trend. "However, the pattern of defaults in the economy remains broadly unchanged as the growth in the flow of consumer delinquency records in recent months also remains close to stability," Boa Vista said.