Service sector up 1.8% in September in Brazil

It is the fourth high in a row measured by the Monthly Service Survey

Nov 14, Brasilia: The volume of services in Brazil increased by 1.8% in September 2020, when compared to August in the seasonally adjusted series.

This was the fourth positive rate in a row. The data were released on Thursday (12), by the Brazilian Institute of Geography and Statistics (IBGE), and are part of the Monthly Survey of Services.

Also, read- Small businesses react quickly to the crisis and recover jobs in Brazil

Four of the five activities surveyed grew from August to September. The highlights were the information and communication services, with an increase of 2% this month, led by the activities of software development and licensing, portals, content providers and Internet search tools and open TV activities. These services accumulated a gain of 7% in the June-September period, after having decreased 8.9% between January and May 2020.

Other advances

The other advances came from services provided to families (9%), other services (4.8%) and transport, auxiliary services to transport and mail (1.1%).

Services rendered to families registered the second positive rate in a row and has already accumulated a 71% gain between May and September. Despite this, they have not yet resumed the level of February, the month before Covid-19.

Transport had the fifth consecutive positive result and accumulated a 20.3% gain between May and September. It is still necessary to advance 11.1% to reach the February level.

Also, read- Small businesses react quickly to the crisis and recover jobs in Brazil

“The highlights within the services provided to families came from hotels and restaurants. The transport sector, growing 1.1% in the month of September, was led by the part of road freight transport and also passenger transport, be it by air or the collective road ”, explains the manager of the Monthly Service Survey, Rodrigo Lobo.

Auxiliary financial services segments

Other services increased by 18.6% in the last four months, mainly due to the revenue gains from the auxiliary financial services segments. The sector surpassed the level of February, before the crisis, and reached, in September, the highest level since October 2014.

“This movement of growth in the other services sector is explained by the consistent drop in interest rates, causing economic agents to flee from investments such as savings, which lost profitability, migrating to fixed and variable income and, with that, companies that act as intermediaries have been increasing revenue consistently since the second half of 2018 ”, points out Rodrigo Lobo.

Also, read- Small businesses react quickly to the crisis and recover jobs in Brazil

In September 2020, only professional, administrative and complimentary services had a negative result with a decrease of 0.6%. This result caused them to eliminate part of the 5.8% gain in the period from June to August.

Overview of the service sector in the country

The Monthly Service Survey shows that there was an expansion in the volume of services in September, compared to August, in 25 of the 27 units of the federation. The most important positive impact came from São Paulo (1.6%). Positive contributions also came from the Rio Grande do Sul (4.0%), Santa Catarina (4.9%) and Paraná (2.6%).

Job creation in the service sector is high

The data from the New General Register of Employed and Unemployed (Novo Caged), of September, also show the good performance of the service sector, which practically doubled the creation of vacancies in the comparison of September with August, jumping from 42,545 to 80,481 new vacancies.

Also, read- Small businesses react quickly to the crisis and recover jobs in Brazil

The highlight was the area of ​​accommodation and food, which had a positive result for the first time since the beginning of the measures imposed because of Covid-19, with the opening of 4,637 new vacancies.

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