Brazil: Volume of services advances 1.7%, highest for the month in the historical series since 2011

RIO DE JANEIRO, BRAZIL – The volume of services provided in the country rose 1.7% in March, compared to February, according to data from the Monthly Service Survey (PMS) released on Thursday, May 12, by the Brazilian Institute of Geography and Statistics (IBGE).

In February, the sector had advanced 0.4% (revised data after the initial disclosure of -0.2%). With the March performance, services recovered the loss of January (-1.8%) and reached the highest level of production since May 2015. Moreover, the 1.7% rise was the highest for the month in the entire historical series, which began in 2011.

In addition, services are, on average, 7.2% above the pre-pandemic level in February 2020. Some activities, however, have yet to recover the pre-pandemic level.

In comparison with March 2021, the indicator rose by 11.4%. In the accumulated result in the 12 months to March, there was an increase of 13.6%. In the year-to-date, sales volume rose 9.4% compared to the same period in 2021.

The seasonally adjusted result was above the median of the estimates of 26 consulting and financial institutions heard by Valor Data, with a variation of 0.9%. The projections range from a fall of 0.4% to a rise of 2.5%. The median expectation for the result of March 2022 compared to March 2021 was 8.3%, with a range between 7.2% and 10.7%.

All five activities followed by the survey showed an increase from February to March. The highlights were transportation (2.7%) and information and communication services (1.7%).

IBGE also informed that nominal income rose 1.2% from February to March. Compared to March 2021, service revenues rose 17.9%.

In March 2022, compared to February, 24 of the 27 federal units investigated recorded positive rates. Among the places with an increase, the most important impact came from São Paulo (2.7%), followed by Minas Gerais (6.4%), Distrito Federal (10.3%), Santa Catarina (4.2%), Rio Grande do Sul (2.6%), and Rio de Janeiro (0.8%).

With information from Valor Econômico

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