Brazilian services volume grows by 1.1% in July

The volume of services in Brazil increased by 1.1% in July compared to June 2022, seasonally adjusted.

The data were released by IBGE (Brazilian Institute of Geography and Statistics) on Tuesday (Sep.13).

In the non-seasonally adjusted series, the volume of services registered the 17th consecutive positive rate, increasing by 6.3% compared to July 2021, with the cumulative figure for the year reaching 8.5%.

The cumulative figure for the last 12 months is 9.6%, continuing the downward trend since April.

According to IBGE, the growth in the volume of services was driven by transport (2.3%), information and communication (1.1%), and family services (0.6%).

On the other hand, other services (-4.2%) and professional, administrative and complementary services (-1.1%) negatively affected the July results.

REGIONAL GROWTH

At the regional level, 17 of the 27 states recorded a month-over-month increase in the volume of services in July.

Among the states with positive rates were São Paulo (1.3%), followed by Minas Gerais (1.9%), Santa Catarina (3.1%), Goiás (4.7%) and Pernambuco (4.0%).

Compared to July 2021, the increase in the volume of services in Brazil was accompanied by 25 federated entities, led by São Paulo (8.1%), followed by Minas Gerais (6.9%) and Rio de Janeiro (3.9%).

TOURISM

The index of tourism activity in Brazil increased by 1.5% in July, while it had decreased by 1.7% in the previous month.

Despite the increase, the segment was still 1.1% below its pre-pandemic level in February 2020.

In the past 12 months, the volume of tourist activity increased by 26.5%.

This is the 16th consecutive positive rate, influenced by an increase in companies’ revenues in restaurants, air transport, hotels, collective passenger collection; transportation, and catering services.

From January to July, the index of tourist activities recorded an increase of 41.9% compared to the same period last year.

According to the IBGE, the result was favored by increasing companies’ sales in air passenger transport, restaurants, hotels, car rental, collective road passen, ger transport, and catering services.

TRANSPORTATION

Passenger transport increased by 4.1% in July compared to the previous month on a seasonally adjusted basis.

This puts the segment 0.4% above the February 2020 level (pre-pandemic) and 21.9% below February 2014, the highest point in the historical series.

Freight traffic set a new record in July, growing by 1.2%. This is 31.7% above the February 2020 level.

Compared to July 2021, not seasonally adjusted, passenger traffic recorded a 24.2% increase. In the same period, freight traffic increased by 15.4%.

From January to July, passenger traffic increased by 41%, while freight traffic increased by 13.4% compared to last year.