The services sector retreated 1.6% in April 2023 compared to March, after accumulating a gain of 2.1% between February and March. Compared to April 2022, the sector increased by 2.7%, the 26th consecutive positive rate. As a result, the cumulative index in the year was 4.8% and the cumulative index in the last 12 months increased from 7.3% in March to 6.8% in April, the lowest result since August 2021 (5.1%). The data are from the Monthly Survey of Services (PMS), the result of which was released today (15) by the IBGE.

Retraction was seen in four of the five activities surveyed. As in March, the transportation sector stood out again as the main influence, however, in April, it pulled the index towards the negative scope. The group fell -4.4%, returning part of its cumulative gain (7.5%) between February and March.

“Several service segments within this sector ended up generating a negative impact: management of ports and terminals, road cargo transportation, mass passenger road and pipeline transportation. These segments were important in terms of the volume of services as a whole, going beyond the borders of the sector itself”, analyzes Rodrigo Lobo, survey manager.
 
The other decreases came from information and communication services (-1.0%), professional, administrative and complementary services (-0.6%); and other services (-1.1%).

“In information and communication services, the main influences came from audiovisual services (-4.2%) and information technology (-1.2%). In terms of professional, administrative and complementary services, engineering services, support for business activities and organization, promotion and management of fairs, congresses and conventions stand out. The other services, on the other hand, were pressured by the segments of supporting financial services and securities brokerages”, details Mr. Lobo.

The only activity in expansion in the month were services rendered to families (1.2%), which recovered part of the cumulative loss between February and March (-2.2%). "The gain this month comes both from lodging and food (3.7%) and from other services rendered to families (3.5%). Within this segment, the part of theater, music and shows in general had the greatest influence ”, notes the manager.

Services sector registers 26th consecutive positive rate in the interannual comparison, but shows deceleration

In the comparison with April 2022, the 2.7% increase trend in the volume of services was followed by four of the five activities. This is the 26th consecutive positive rate, but it has been slowing down.

“It is the least intense result since March 2021 (4.6%), when this sequence of positive rates began. One of the reasons is the basis for comparison. We had very strong movements in 2021 and 2022 and now they are losing force”, explains Mr. Lobo.

He highlights the effects of the information technology services segment, which had a sharp growth during the pandemic, due to the adaptation of companies to working from home and provision of online services, and the transportation of cargo, with the flow of agricultural production, which broke harvest records, and electronic commerce. These activities showed strong movements in 2021 and 2022 and have been showing less intense growth.

The cumulative result for the year, compared to the same period of the previous year, was 4.8%, with positive rates in all activities. The most important positive contribution came from the sector of transportation, auxiliary services to transportation and mailing (5.4%), followed by information and communication (5.4%), professional, administrative and complementary services (4.8%), services rendered to families (6.8%), and other services (0.2%).

Cargo and passenger transportation retreat in April

In the special indicator of transport by type of use, both the transport of cargo (-3.4%) and that of passengers (-1.4%) registered a decline from March to April.

In the case of passenger transportation in Brazil, it was the second consecutive negative result, a period in which it accumulated a loss of 4.7%. Thus, the segment is 0.9% below the February 2020 level (pre-pandemic) and 23.7% below February 2014 (highest point in the time series).

The drop in cargo transportation eliminated a small part of the 8.0% gain seen between February and March. The segment is 3.4% below the highest point in its series, reached in March 2023. With regard to the pre-pandemic level, cargo transportation is 34.9% above February 2020.

"Cargo transportation has greater weight, impacting the sector more. Within each of them, the cargo road mode had a more decisive impact, as well as the mass passenger road transportation", points out the manager.

Compared to April 2022, passenger transportation fell by 5.2% and interrupted a sequence of 24 consecutive positive rates, while cargo transportation grew by 7.8%, marking the 32nd consecutive positive result. In the cumulative indicator in the first four months, passenger transportation grew by 3.9% and cargo transportation increased by 10.7%.

Services retreat in 26 of the 27 Federation Units in April

In the analysis by area, in April, the volume of services decreased in 26 of the 27 Federation Units, in relation to March. The most important impacts came from São Paulo (-1.5%) and Rio de Janeiro (-5.5%), followed by Santa Catarina (-3.5%), Goiás (-5.6%) and Mato Grosso (-4.2%). On the other hand, Ceará (1.0%) made the only positive contribution in the month.

“This type of dissemination, whether spreading positive or negative results, is very unusual. The last time was in September 2020, when 26 FUs tested positive,” noted Mr. Lobo.

Compared to April 2022, the increase trend in the volume of services in Brazil (2.7%) was followed by 23 of the 27 Federation Units. The main positive contribution came from Minas Gerais (6.9%), followed by Paraná (8.7%), Santa Catarina (10.7%), São Paulo (0.6%) and Rio Grande do Sul (5. 3%). On the other hand, Mato Grosso do Sul (-1.3%), Alagoas (-1.8%) and Amapá (-4.2%) brought the only negative results for the month.

In the cumulative result for the first four months of 2023, the increase in the volume of services in Brazil (4.8%) was widespread among the investigated locations, since 26 of the 27 Federation Units also showed expansion in real revenue from services. The main positive impact came from São Paulo (2.4%), followed by Rio de Janeiro (5.8%), Minas Gerais (8.4%), Paraná (10.5%) and Santa Catarina (10.4%). %). On the other hand, Mato Grosso do Sul (-0.2%) registered the only negative influence on the national index.

Index of tourism activities changes -0.1% in April

The index of tourism activities changed by -0.1% compared to March, the third consecutive negative rate, a period in which it accumulated a loss of 1.6%. As a result, the tourism segment is 0.7% above the February 2020 level and 6.7% below the highest point in the series, reached in February 2014.

Regionally, only five of the 12 locations surveyed followed this retraction movement. The most relevant negative influence came from the Federal District (-6.2%), followed by Paraná (-2.8%), Bahia (-1.3%) and Pernambuco (-1.7%). On the other hand, São Paulo (1.0%) and Rio de Janeiro (2.6%) registered the main advances in regional terms.

According to the survey manager, in that month, there was great influence from the segment of passenger air transportation and car rental, which pulled the indicator towards the negative field. “Also in the lodging and food sector, lodging had negative trend, and, although restaurants are pulling it up, it was not enough to bring the index to the positive field”, he analyzes.

More about the survey

The PMS produces indicators that make it possible to monitor the short-term behavior of the service sector in the country, investigating the gross revenue from services in formally constituted companies, with 20 or more employed persons, whose main activity is a non-financial service, excluding health and education. There are results for Brazil and all Federation Units. The results can be consulted on Sidra database.

This is the fourth release of the new survey series, which underwent updates in the selection of the sample of companies, in addition to methodological changes, with the objective of portraying economic changes in society. The updates are previously planned and periodically implemented by the IBGE. The next release of the Monthly Survey of Services will be on July 12th.