The country’s service sector rose by 0.7% in January, marking the third consecutive month of gains, translating into a trend.
The Brazilian Institute of Geography and Statistics (IBGE) shared these findings on Friday, March 15, 2024.
Over the past year, the sector has grown by 2.4%. It is only 0.7% short of its highest record, set in December 2022. This peak was the most significant since records began in 2011.
The January rise contributes to a 1.9% gain over three months. Currently, the sector stands 13.5% higher than in February 2020, before COVID-19. It barely trails the December 2022 peak.
When comparing January 2024 to January 2023, we see a 4.5% jump. This increase is notable, being the sharpest rise since 2023’s 5.1% growth.
The sector’s 12-month rise of 2.4% matches December 2023’s rate. This consistency underscores the sector’s resilience and recovery path.
In detail, four service activities experienced growth from December to January. These were:
- Information and communication, up by 1.5%;
- Professional, administrative, and supplementary services, increasing by 1.1%;
- Transportation, rising by 0.7%;
- Other services, growing by 0.2%.
Only the household services sector saw a decrease, dropping by 2.7%.
This growth matters for several reasons. First, it shows the service sector’s ability to rebound and expand, even in uncertain times.
Second, the consistent increases across most activities highlight diverse strengths within the sector.
Finally, the sector’s recovery is vital for the broader economy, signaling health and potential for more jobs and investments.
This positive trend is essential for economic stability and growth, especially after the challenges posed by the pandemic.