Monthly Survey of Services
Services sector grows 0.8% in July, but does not recove losses this year
September 12, 2019 09h00 AM | Last Updated: September 12, 2019 05h35 PM
Despite the increase of 0.8% between June and July 2019, the highest since December 2018, the sector of services is 11.8% below the record figure of May 2014 and 1.2% smaller than in December last year. That is what shows the Monthly Survey of Services, released today by the IBGE.
The manager of the survey, Rodrigo Lobo, says the decrease versus December can be due to the transportation sector, which is 2.8% smaller than in the end of last year. Although services rendered to families (1.4%), information and communication services (1%), professional, administrative and complementary services (1.1%) and other services (6%) are on the positive side of this comparison, the transportation sector is, according to him, responsible for that loss.
“Cargo transportation, mainly by land, is strongly related to the industrial sector", which has recorded negative rates in the last three months. That result is influenced by the magnitude of the decrease, besides the contribution of the transportation sector, which represents 31.25% in services.”
Besides the increase of 0.8% in comparison with June, pushed by information and communication services (1.8%), other services (4.6%) and transportation, auxiliary services for transportation and mailing (0.7%), the rates were positive in the other comparisons.
The cumulative index in 12 months, considered a trend indicator, increased by 0.9% in relation to the same period last year, with acceleration. The survey manager, however, believes that does not show the recovery of the sector clearly yet.
The increase of 1.1% in May 2019 was due to a low basis for comparison in 12 months, since the decrease of 1.6% in May 2018, resulting from the truck driver's strike, is not part of the period analyzed.
“The result of May 2019 is unusual, since the time series was marked by the truck driver's strike. So the coming path is not clear. The secod quarter is an important challenge for the sector."
As services fell 0.9% in the first semester of 2018, the increase of 0.8% in the same period of 2019 was due to a low basis for comparison. The second semester of the year had an increase of 0.8%. “It will be more difficult to keep that pace of increase.”
Services also increases in the comparison with July 2018 (1.8%), with an increase in four of the five activities and in 54.8% of the 166 services surveyed. The sector of information and communication services (3.8%) accounted for the most relevant positive contribution. The other increases came from other services (10.2%), services rendered to families (2.6%) and professional, administrative and complementary services (0.9%).
