After rise, Services sector halts upturn in January
March 16, 2018 09h00 AM | Last Updated: March 16, 2018 11h05 AM
The services sector fell once again (-1.9%) in January after rising in December (1.5%), according to the information from the Monthly Survey of Services - PMS, released today by the IBGE. This drop in the comparison with the last month of 2017 can also be noticed in relation to January last year (-1.3%).
The drop was widespread among the activities. Four out of the five groups surveyed shrank in January over December (Transportation and Mailing, Information and Communication, Services rendered to families and Professional, administrative and complementary services). The change was also negative in 18 out of the 27 Federation Units.
"In December, we had a significant increase in contract signatures and receiving. A high basis of comparison was formed and, as a result, we had this drop in January", explains Rodrigo Lobo, manager of the survey. "This drop does not offset the gains since November, but its impact was higher than the rise in December", completes him.
Other services, which gathers the activities not included in the other groups, was the only group to register positive figures. It rose 3.8% in January over December, having also risen 1.1% in December.
"I would highlight the services of insurance, complementary welfare and health brokers in this group. This is the major service within this group, weighting 10.8% of the total", says the manager.
Slow upturn
In December, the services sector had interrupted a series of 32 drops in the comparison with the same month of the previous year, recording a rise of 0.6%. Nevertheless, this figure was negative once again in January (-1.3%).
"This drop was reported in three out of the five activity groups surveyed, mainly in information and communication services, having telecommunication as the negative highlight", explains Rodrigo.
In the comparison between the last 12 months and the 12 immediately previous months, the drop was reduced from 2.8% in December to 2.7% in January.
"Despite the slight upturn in December, volume of services as a whole is not so dynamic yet. It requires that trade goes well and that industry shows a more consistent upturn, as well as the consumption of households and increase in employment. It depends a lot on the rest of the economy. Whilst the other sectors do not show a lasting rise, it still remains oscillating. This is what we noticed in January", concludes him.
