Services sector in Brazil records modest growth in May
According to the Brazilian Institute of Geography and Statistics (IBGE), the volume of services provided in Brazil increased by 0.9% in May compared to April.
This follows a drop of 1.5% in April, which was revised from an initial reported decrease of 1.6%.
In comparison to May 2022, the indicator rose by 4.7%. Over the 12-month period ending in May, there was an overall increase of 6.4%.
The accumulated result for the year 2023 until May was 4.8%.
The increase in service activity exceeded the median estimates of 20 consultancies and financial institutions, which predicted a 0.5% rise.
Projections for May ranged from stability to a 1.9% increase.
In terms of year-on-year comparison, the median expectation for May 2023 compared to May 2022 was a 3.9% increase, with growth expected between 2.6% and 5.7%.
May’s performance puts services at a level 11.5% higher than pre-pandemic levels in February 2020.
In May, 24 out of 27 states recorded positive rates compared to April.
The largest impacts came from Mato Grosso (22.5%) and Rio de Janeiro (3.4%), followed by Minas Gerais (2.6%), Rio Grande do Sul (2.0%), and Goiás (5.0%). São Paulo showed a negative contribution with a decrease of 1.5%.
Transportation, services provided to households, other services, and information and communication all saw increases between April and May.
Transportation saw the most significant advance with a 2.2% increase, recovering from a 4.3% fall in April.
Services provided to households and other services also experienced growth, while information and communication services rebounded after a decline in April.
The only sector to show a decline in May compared to April was professional, administrative, and complementary services, which decreased by 1.0%.
Overall, the modest growth in service activity suggests a gradual recovery in the sector, indicating positive trends for the Brazilian economy.
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