Sunday , May 29 2022

Services have stagnated since April – Opinion



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According to Rodrigo Lobo, Coordinator of Services and Trade Coordination of the Institute of Geography and Statistics of Brazil (IBGE), the volume of services provided in the country was the same as in April. In the comparison between September 2017 and 2018, there are signs of slight developments, but in the last few months, the volatility caused by the May carrier's strike predominates. One of the positive indicators is that the September result "ends somewhat the volatility," Lobo said.

Between August and September, according to Monthly Service Survey (PMS) of IBGE, there was a slight negative variation of 0.3% in series with seasonal adjustments. Compared to September 2017, the service volume increased by 0.5%, but nominal revenue growth was only 3.2%, with a smaller percentage than the inflation in that period.

Behavior of the service sector accompanied by that of industry and retail, determining the segments of service evolution. It is different in developed countries where many services, such as tourism, have a life of their own. The share of services in the country's gross domestic product (GDP) is in the order of 70%.

The unsatisfactory evolution of services is widespread. Between September 2017 and September 2018, only 41% of service types showed an increase, much lower than the 47% recorded in August, according to PMS.

With a strong weight in the IBGE survey, the transport sector led in the autumn of September. Air, water and land transport services have fallen, reflecting a decline in commodity traffic. He also gave up professional, administrative and complementary services and other services. This decline was not offset by improvements in household services, which increased by 1.4%.

The Institute for Industrial Development Studies (Iedi) highlights the weakness of corporate services, which "suggests a very complicated situation for companies in the country, affecting their demand for both higher services and auxiliary services, usually external." IBGE technicians hope that boosting confidence in the economy will boost recovery in the last quarter.

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