In February, Brazil’s service sector PMI soared to a 19-month high, indicating robust economic activity.
The index moved up from 53.1 in January to 54.6, showcasing the quickest expansion in nearly two years.
S&P Global attributed this rise to stronger demand, aggressive marketing, and an increase in new orders.
The report noted activity boosts in nearly all major sectors except real estate and commercial services, with consumer services leading the growth due to a surge in new business.
Sales too saw a significant uptick, the highest since October 2022, driven by heightened demand and successful marketing and sales strategies.
This vigorous service sector performance led to a sharp increase in the composite PMI, marking the most substantial growth in 19 months.
The composite PMI advanced from 53.2 in January to 55.1 in February.
Pollyanna De Lima, from S&P Global Market Intelligence, highlighted the positive implications of these findings.
She praised the recovery in industrial production and the overall service sector’s resilience.
The acceleration of growth across sectors points to a rise in domestic demand, fueling broader economic expansion.
This is a promising indicator for the country’s GDP in the first quarter.
De Lima also mentioned a decrease in political uncertainty and a boost in business confidence, thanks to government initiatives and industrial investment releases.
This scenario underlines a broader economic revival, signaling a positive outlook for Brazil’s economic trajectory.
Brazil’s service sector growth and optimism reflect the economy’s adaptability and potential for sustained expansion, promising future economic health.