In November, Brazil’s service sector witnessed a pivotal turnaround, registering a 0.4% increase over October, following three months of decline.
The Brazilian stats agency IBGE announced a positive shift on January 16, 2024. This development marks a significant moment in the country’s ongoing economic recovery.
Previously, the sector experienced a cumulative downturn of 2.2% during August, September, and October.
Now, it stands 10.8% higher than its pre-pandemic level in February 2020.
However, it remains 2.6% below the peak recorded in December 2022, which marked the highest point since record-keeping began in 2012.
When comparing November 2022 to the same period in the previous year, the service sector noted its third successive monthly decrease, with a 0.3% drop.
Nevertheless, from January to November, there has been a cumulative growth of 2.7%.
The overall growth momentum has experienced a slowdown over the past 12 months, decreasing from 3.6% in October to 3% in November.
This marks the lowest rate since July 2021, which stood at 2.9%.
Sectoral Dynamics in Brazil’s November Recovery: A Detailed Analysis
The November recovery was driven by gains in three out of five surveyed activities:
- a notable rise in other services by 3.6%.
- 1.0% increase in professional, administrative, and complementary services.
- 2.2% growth in services provided to families.
Conversely, the transportation sector experienced a 1.0% decline, and information and communication services saw a marginal decrease of 0.1%.
This mixed performance across sectors illustrates the nuanced nature of the recovery process, highlighting both the resilience and challenges within Brazil’s service industry.
The data signals a cautiously optimistic outlook for the sector, indicating an emerging trend of gradual stabilization and potential growth in the months ahead.