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After four months of decrease, services grow 5% in June

Section: Economic Statistics | Umberlândia Cabral

August 13, 2020 09h00 AM | Last Updated: August 13, 2020 11h03 AM

Restaurants leveraged the growth of services in June
Photo: Tania Rego/Agência Brasil

The services sector advanced 5% from May to June and interrupted a sequence of negative rates in the previous four months, when it accumulated a loss of 19.5%. Even with the positive result in June, the volume of services was 14.5% below the level recorded in February, the last month before the implementation of social isolation measures to control the Covid-19 pandemic. Compared to June 2019, the drop is 12.1%. The data are from the Monthly Survey of Services (PMS), released today (13) by the IBGE.

Among the 166 services investigated by the survey, the restaurant segment exerted the major influence on the index. “With the isolation measures, many restaurants were closed, although some were open for delivery only. With the relaxation, that is, with the increase in the flow of people in Brazilian cities, they reopened and their revenue were back to growth again, with impact on the volume of services in June ”, explains the survey manager, Mr. Rodrigo Lobo.

Moreover, he points out that the retraction felt by the sector in February (-1.1%) was seasonal and was a response to the behavior seen at the end of 2019. The effects of social isolation began to be felt in the last 10 days of March, when the shutdown began. Between March and May, the sector had a retraction of 18.6%.

The five sectors surveyed followed the positive result of the services sector in June, with a highlight to transportation, support services to transportation and mailing services, with an increase of 6.9% and information and communication services, with growth of 3.3%. “It is the second positive rate for the transportation sector. Together with services rendered to families, they brought losses in March and April and positive rates in May and June. But the growth of the last two months was not enough to offset the loss in the previous months ”, analyzes Mr. Lobo.

In May and June, the transportation sector accumulated an increase of 11.9%, while the cumulative  loss of March and April was 25.2%. “Among the segments of the sector that grew this month are road transportation of cargo, air passenger transportation and airport operation. As a result, the transportation sector had the most intense increase since June 2018 ”, he adds.

Information and communication services, in turn, increased very much influenced by development and licensing of software and portals, content providers and Internet search tools. “The information and communication sector was one of those that least felt the impact of the pandemic. The most affected segments in the sector were those related to audiovisual. Information technology services in particular had only a slight loss in the months of March and April and started to grow again in June, always very close to the top of the time series ”, adds Mr. Lobo.

Despite the 5% increase in June, the services sector closed the first half of 2020 decreasing 8.3%, with a drop in four of the five activities surveyed. The survey points to the contribution of closed establishments during social isolation to the drop in the sector of servicesrendered to families, which fell 35.2% in the period. The decline was mainly influenced by the revenue drop of restaurants, hotels, catering and other prepared food services.

São Paulo increases 5.1% in June compared to May

The advance in the services sector was also felt by 21 of the 27 Federation Units. São Paulo registered a 5.1% growth, after having decreased 19.5% between February and May. Rio de Janeiro (3.6%), Minas Gerais (4.7%), Rio Grande do Sul (6.6%) and the Federal District (6.6%) also followed the growth trend. Mato Grosso (-3.2%), Paraná (-1.0%) and Espírito Santo (-3.2%) registered the main negative impacts among the states.

Tourism index grows 19.8% in June

In June, the tourism activity index increased 19.8% compared to May. It is the second consecutive positive rate, a period in which it accumulated growth of 28.1%. The tourism segment had an accumulated loss of 68.1% between March and April, reflecting the impact of the preventive measures to fight against the Covid-19 pandemic on the companies that make up the sector's activities. Among the most affected activities are air transportation of passengers, restaurants and hotels.

All twelve Federation Units surveyed in this indicator had positive rates, with a highlight to São Paulo (19.6%), Rio de Janeiro (23.7%), Minas Gerais (17.2%), Santa Catarina (26 , 1%) and Paraná (17.9%)

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