Services volume grows 0.5% in August compared to July, in line with expectations; high in the annual comparison is 16.7%

SAO PAULO – The volume of services in Brazil increased 0.5% in August compared to July, the fifth positive rate in a row, accumulating a gain of 6.5% in the period, according to the Monthly Survey of Services (PMS) of the Brazilian Institute of Geography and Statistics (IBGE) released this Thursday (14).

In comparison with August 2020, the volume of services grew 16.7%, the sixth consecutive positive rate. In the accumulated result for the year, the sector increased 11.5% compared to the same period of the previous year. In 12 months, changing from 2.9% in July to 5.1% in August, it maintained the upward trend started in February this year (-8.6%) and reached the most intense rate in the historical series, started in December of 2012.

The expectation of analysts heard by Refinitiv was 0.5% high compared to the immediately previous month, and 16.3% compared to the same period of the previous year.

“The services sector continues its recovery trajectory in August, especially in services considered out-of-person, but also in face-to-face, with the advance of vaccination and the increase in people’s mobility. Since June of last year, the sector has accumulated 14 positive rates and only one negative, registered in March, when some activities considered non-essential were closed by determination of local governments amid the advance of the second wave of the coronavirus”, explains the research manager , Rodrigo Lobo.

The advance of services in August was driven by four of the five activities, with emphasis on information and communication services (1.2%) and transport (1.1%), after negative results in July.

“The first was driven by software development and licensing services, portals and content providers and internet search tools, in addition to integrated editing and book printing. The second is for the air transport of passengers and operation of airports, as there was a greater flow of passengers moving and increasing the revenue of airlines and airport concessionaires. I also highlight the cargo logistics part”, details Rodrigo Lobo.

Services rendered to families increased 4.1% in August, the fifth positive rate since April, accumulating growth of 50.5%. This advance comes, again, from the accommodation and food segment, such as hotels and restaurants. Even with the advance in August, services provided to families operate 17.4% below the level of February 2020.

With the lesser impact on the index, other services (1.5%) eliminated the decrease of the previous month (-0.2%). “This activity was driven by auxiliary financial services and, to a lesser extent, by post-harvest services related to agriculture, such as hiring labor for harvesting the crop or planting some agricultural product and leasing machinery. Once the harvest is done, there is a set of services that are used in this agricultural process”, explains Lobo.

(with IBGE News Agency)

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