In October 2020, the volume of services in Brazil increased 1.7% compared to September, in the seasonally adjusted series. It was the fifth positive rate in a row, accumulating an increase of 15.8% in the period. This result follows a sequence of four negative rates, between February and May, with cumulative loss of 19.8%.

In the non-adjusted series, compared to October 2019, the volume of services decreased 7.4%, its eighth consecutive negative rate in this comparison. The cumulative index in the year fell 8.7% compared to the same period of 2019.

The rate of the last 12 months decreased by 6.8% in October 2020, keeping the downward trend that started in January 2020 and reaching the most intense negative result in the series of this indicator, which started in December 2012.

The 1.7% increase in the volume of services, from September to October 2020, was seen in four of the five activities investigated, with a highlight to information and communication services, which, by advancing 2.6% this month, accumulated a gain 10.0% in the June-October period, after falling 8.8% between January and May 2020.

The other advances came from transportation, support services to transportation and mailing (1.5%), services rendered to families (4.6%) and professional, administrative and complementary services (0.8%)".

The first two sectors were the most affected by the COVID-19 pandemic. Thus, transportation, having registered the sixth consecutive positive result, has already accumulated a gain of 22.7% between May and October, but it still needs to advance 8.8% to reach the level of last February.

Services rendered to families registered the third positive rate in a row and have already accumulated a gain of 80.4% in the last six months, but they still need to grow 47.6% to return to the level of February.

Professional, administrative and complementary services reached a 5.9% gain in the period from June to October, after a decrease of 17.4% between February and May.

The only negative result of the month was with Other services (-3.5%), which returned part of the 19.2% gain accumulated in the last four months.

The quarterly moving average grew 2.2% in the quarter ended in October, maintaining the upward trend that started last July.

All five activities showed positive results in October, with a highlight to Services rendered to families (14.3%), followed by Transportation, support services to transportation and mailing (2.3%), Information and communication (1.2%), Other services (0.9%) and Professional, administrative and complementary services (0.6%).

Compared to October 2019, the volume of services fell 7.4%, the eighth negative rate in a row for this comparison. There was a decrease in three of the five activities and growth in just over a third (35.5%) of the 166 types of services investigated.

Among the sectors, Professional, administrative and complementary services (-13.5%), Transportation, support services to transportation and mailing (-8.2%) and Services rendered to families (-30.2%) accounted for the main negative influences on the volume of services.

The first sector was largely affected by the drop in revenues from intangible asset management companies; general cleaning; travel agencies; organization, advertising and management of fairs, congresses and conventions; technical activities related to architecture and engineering; rental of machinery and equipment; electronic payment solutions; administration of loyalty programs; and car rental.

Transportation, support services to transportation and mailing have suffered negative pressure from collective air and road transportation (both for passengers); national mailing; cargo road transportation; subway train; vehicle parking and school transportation.

Services rendered to families, on the other hand, showed a drop in hotel revenues; restaurants; catering services; and fitness activities.

The only positive contribution in the month came from Other services (8.7%), due to the increase in the revenue from the stock exchange management companies and organized over-the-counter markets; collection of non-hazardous waste of domestic, urban or industrial origin; insurance, pension and health insurance brokers and agents; securities brokers; and administration of funds by contract or commission.

Information and communication services showed stability (0.0%) compared to October 2019, with a positive highlight for the revenues of the portal managers, content providers and Internet search engines; while telecommunications; programmers and activities related to pay television; integrated publishing to book printing; satellite pay TV operators; and cinema exhibition remained showing lower revenues than in the same month of 2019.

In the cumulative result for the year, compared to the same period in 2019, the services sector decreased 8.7%, with a drop in four of the five dissemination activities and with expansion in only 25.3% of the 166 types of services investigated.

Among the sectors, Services rendered to families (-37.7%) exerted the most relevant negative influence, pressured, especially, by the drop in restaurant revenues; hotels; and catering and other prepared food services. This sector is still slowly resuming its activities, due to the effects of the pandemic.

Other negative pressures came from Transportation, support services to transportation and mailing (-8.5%) and Professional, administrative and complementary services (-12.0%), mainly explained by the reduction in the revenue of air transportation companies (passengers); collective passenger road transportation; cargo road transportation; national mailing; and passenger railway transportation, in the first branch; and management of intangible assets; administration of loyalty programs; electronic payment solutions; general cleaning; travel agencies; organization, advertising and management of fairs, congresses and conventions; rental of machinery and equipment; and related technical activities linked to architecture and engineering, in the latter.

With less impact on the general index, Information and communication services (-2.3%) presented losses of revenue, especially in telecommunications; programmers and activities related to pay television; cinematographic exhibition activities; advisory in information technology; and satellite TV.

The only positive contribution accumulated from January to October 2020, compared to the same period of 2019, came from Other services (6.4%), driven, to a large extent, by the increase in revenues in the securities brokerage, securities and goods; administration of stock exchanges and organized over-the-counter markets; fund management activities by contract or commission; and collection of non-hazardous waste of domestic, urban or industrial origin.

Services grew in 16 of the 27 Federation Units

Regionally, 16 of the 27 Federation Units had an expansion in the volume of services in October, compared to September, following the increase (1.7%) observed nationally.

Among the places that showed positive results this month, São Paulo (1.3%) had the most important positive impact. Other relevant positive contributions came from Rio de Janeiro (2.5%), Bahia (10.8%) and the Federal District (3.2%). In contrast, Mato Grosso (-8.0%) recorded the main decline in regional terms.

Compared to October 2019, the decline in the volume of services in Brazil (-7.4%) was seen in 23 of the 27 Federation Units. The main negative influence came from São Paulo (-7.7%), followed by Rio de Janeiro (-8.7%), Paraná (-10.6%) and Rio Grande do Sul (-11.7%). On the other hand, Santa Catarina (2.5%) and Mato Grosso do Sul (7.6%) had the most relevant positive results.

In the cumulative index of 2020, compared to the same period of the previous year, the drop in the volume of services in Brazil (-8.7%) spread over the places investigated, since 26 of the 27 Federation Units also showed retraction. in real service revenue. The main negative impact in regional terms came from São Paulo (-8.2%), followed by Rio de Janeiro (-7.4%), Rio Grande do Sul (-13.8%), Minas Gerais (-7, 5%), Paraná (-10.2%) and Bahia (-17.2%). The only positive contribution in the national index came from Rondônia (1.2%).

Tourism activities index grows 7.1% in October

In October 2020, the tourism activity index grew 7.1% compared to September, the sixth consecutive positive rate, a period in which it accumulated a gain of 102.6%. The tourism segment still needs to advance 54.7% to return to the level of February 2020 (the month before the effects of the pandemic). Measures against COVID-19 (such as encouraging social isolation) affected most of tourism activities in a more intense and immediate way, mainly the air transportation of passengers, restaurants and hotels.

All the 12 Federation Units where the indicator is investigated followed this expansion movement, with a highlight to São Paulo (3.6%), followed by Bahia (24.4%), Rio de Janeiro (6.1%), Minas Gerais (10.9%) and Rio Grande do Sul (19.7%).

Compared to October 2019, the index of volume of tourist activities in Brazil fell 33.6%, the eighth negative rate in a row, pressured mainly by the drop in revenue from companies operating in air transportation; restaurants; hotels; catering services; collective passenger road transportation; travel agencies; and car rental.

In regional terms, all the 12 Federation Units investigated showed a decrease in services focused on tourism, with a highlight to São Paulo (-40.9%), followed by Rio de Janeiro (-29.3%), Minas Gerais (-27.4%), Bahia (-31.9%), Pernambuco (-38.2%) and Rio Grande do Sul (-35.8%).

In the cumulative result for the year, the special aggregate of tourism activities fell 38.2% compared to the same period of 2019, pressured, mainly, by restaurants; air transportation; hotels; collective passenger road transportation; catering and other prepared food services; and travel agencies.

All the 12 Federation Units investigated registered negative rates, especially São Paulo (-40.8%), followed by Rio de Janeiro (-31.8%), Minas Gerais (-36.3%), Bahia (- 41.1%) and Rio Grande do Sul (-44.6%).