Brazil’s services sector confidence in July is highest since 2014 – FGV Ibre

RIO DE JANEIRO, BRAZIL – The confidence of the services sector in Brazil reached in July the highest level in more than seven years, with improvement both in expectations and in the assessment of the current situation.

Data released Thursday by the Getulio Vargas Foundation (FGV) showed that the Services Confidence Index (SCI) jumped 4.2 points in July to 98.0 points, the highest level since March 2014 (98.3 points).

“Services confidence advanced for the fourth consecutive month, surpassing the pre-pandemic level and returning to the highest level since 2014,” Rodolpho Tobler, FGV Ibre economist, said in a statement.

According to FGV, the Index of Present Situation (ISA-S), an indicator of the perception about the present moment of the services sector, advanced 1.7 points to 90.4, the same level as in February 2020, therefore at the pre-pandemic level.

The Expectations Index (IE-S), which reflects the outlook for the coming months, rose by 6.5 points to 105.6, the highest level since November 2012. In addition, according to Tobler, the fact that it returned to a level above 100 points suggests a certain optimism with the short and medium-term.

The services volume advanced 1.2% in May over April, showing signs of heating up with record high for the month of May and standing 0.2% above the pre-pandemic level, according to IBGE data.

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