Brazil’s service sector volume increased by 0.5% in July, marking its third consecutive month of growth. Over these three months, the sector has gone up by 2.2%.
Yearly data shows a 3.5% increase in July. The sector has gained 4.5% so far this year. This info comes from the stats agency’s IBGE’s Monthly Services Survey.
As of now, the industry stands 12.8% above its levels from February 2020. However, it’s 0.9% under its December 2020 high.
Revenue rose 0.2% when compared to June. Yearly revenue gained 4.6%. Revenue is also up 8.5% for this year and 11% for the past 12 months.
Three out of five subsectors showed volume increases. The transport sector led with a 0.6% increase.
This gain is mainly due to road freight, which has grown thanks to online shopping.
Rodrigo Lobo, an IBGE researcher, noted that farming is also boosting road freight. Crop surveys predict record yields for corn and soybeans.
This ups the need for shipping for supplies like fertilizers and for moving the crops.
Family services saw a 1% growth. Other services grew by 0.3%.
On the downside, professional services dropped by 1.1%. The communication sector dipped 0.2%.
Tourism activities increased 0.7% from June to July. They are now 6.2% above levels from February 2020. Yet, they remain 1.4% below their peak in February 2014.
Background
The service sector is crucial for Brazil’s economy. It makes up about 70% of the country’s GDP. Historically, it’s been a key driver of employment as well.
Brazil’s economy took a hard hit in 2020 due to the pandemic. Many services like tourism and dining out suffered. Yet, some like digital services thrived.
In 2021, the service sector began to recover. Online shopping and remote work helped in this revival.
Despite challenges, the sector showed resilience. Since 2012, the IBGE has tracked this sector’s performance.
Its Monthly Services Survey is a trusted source for data. Policymakers often use this data for their decisions.
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief