The services sector recorded in Brazil a nominal growth of 5.7% in June 2014, in the comparison with the same month a year ago. It is the lowest change in the time series started in January 2012, below the rates recorded in May (6.6%) and April (6.2%). The second lowest rate occurred in March 2013 (6.1%). Services rendered to families grew 11.2%, Information and communication services, 5.7%, Professional, administrative and complementary services, 7.3%, Transportation, support activities for transportation and mailing activities, 4.6%, and Other services, 1.2%. The cumulative nominal growth in the year (7.4%) and in 12 months (8.0%) were the lowest in the time series. The previous lowest cumulative indexes occurred, respectively, in March 2013 (7.6% in the year) and May 2014 (8.2% in 12 months).

The Monthly Survey of Services (PMS), first monthly short-term indicator investigating the services sector in the country, encompasses the non-financial business segment, except the sectors of health, education, public management and imputed rent (value the owners would earn in case they rented the properties where they live). The complete publication of the survey can be seen at

www.ibge.gov.br/english/estatistica/indicadores/servicos/pms.

The deceleration of the services sector in July is due to the result of Transportation, support activities for transportation and mailing activities (4.6%), lower than in the months of May (7.5%) and April (8.0%), and the 1.2% growth in Other services, against 5.6% in May and 9.7% in April. The segment of Transportation, support activities for transportation and mailing activities weights 30.7% in the services sector structure and, in July, the relative share stood at 24.5%. The sector of Other services, even though representing a lower weight (6.6%), reduced its relative share from 9.7% to 1.8%.

The results by quarter and by semester also recorded lower values than those of the previous periods. The growth of the services sector in the second quarter of 2014, in relation to the second quarter of 2013, stood at 6.2% against the 8.7% registered in the first quarter. In the 1st semester, the growth rate stayed at 7.4% against 8.5% and 8.4% of the 2nd and 1st semesters of 2013, respectively. Transportation, support activities for transportation and mailing activities and Communication and information services were the segments that recorded lower growth rates, both by semester and by quarter, in relation to the previous periods.

The segment of Services rendered to families posted in Brazil a change of 11.2% in June over the same month a year ago. That was below the rate seen in May (11.6%) and above the rate of April (10.4%). Housing and food services registered a 12.1% growth and Other services rendered to families, 5.4%. The series of the cumulative change has been keeping, in the 1st semester, a superior level over the 2nd semester of 2013. Concerning Housing and food services, there are peculiar results in the selected Federation Units which hosted FIFA World Cup. In this segment, the highest growth rates were registered in Bahia (33.9%), followed by Pernambuco (17.7%) and Rio de Janeiro (15.0%), where there was a greater demand for hotels, motels, inns, hostels and campsites, and greater consumption in restaurants, bars and snack bars. The lowest rates were seen in Paraná (7.4%), São Paulo (8.7%) and Minas Gerais (10.6%).

Information and communication services recorded growth of 5.7%, above the rates seen in May (4.4%) and April (3.7%). Information and communication technology services - ICT, which comprise telecommunication and information technology services, recorded a change of 3.0%. Audiovisual, publishing and news agency services registered a growth of 22.8%. Audiovisual services encompass radio and TV activities, which contributed to this growth because of FIFA World Cup. The segment of Information and communication services represented 35.1% in terms of relative participation in the month, with 2.0 percentage points (pp) in terms of the absolute composition of the overall index.

The growth of the Professional, administrative and complementary services stood at 7.3% in June, in the comparison with the same month last year, against 7.8% in May and 5.2% in April. Technical professional services, which encompass intensive services of knowledge, grew 5.6%. Administrative and complementary services, which include intensive services of labor force grew 8.0%. With a relative share of 26.3%, this segment contributed, in absolute terms, with 1.5 pp to the overall index.

The segment of Transportation, support activities for transportation and mailing activities recorded a nominal growth of 4.6% in June, in the comparison with the same month a year ago, below May's rate (7.5%) and April's result (8.0%). By modality, the results were: Road transportation, change of 2.6%, Waterway transportation, 14.1% and Air transportation, 4.5%. Storage services and support activities for transportation and mailing activities registered a growth of 7.0%. The segment of Transportation, support activities for transportation and mailing activities contributed, in relative terms, with 24.5% and with 1.4 pp, in absolute terms, to the formation of the overall index. In the specific cases of the segments Road transportation and Air transportation, the rates lower than those of the previous periods are due to the reduction of working days, if compared to the same month a year ago, because of the World Cup holidays. This event caused a slower demand for Road transportation, especially freight transportation, and for Air transportation, because of the reduction in business trips.

The segment Other services presented a nominal growth of 1.2%, lower than May's (5.6%) and April's rates (9.7%). Such growth, below that of the previous periods, also results from the reduction of working days, which directly affected the activity of Support financial services, including security brokers and dealers. According to BM&FBOVESPA, the total volume negotiated in June 2014 registered a 34.6% reduction in the comparison with June 2013.

In June, Federal District boosts (18.7%)

Concerning the results by area, data reveal that in June the greatest changes came from the Federal District (18.7%), Rio de Janeiro (12.4%) and Goiás (10.2%). The lowest positive growth changes were recorded in Minas Gerais (0.7%), Alagoas (1.1%) and Amazonas (1.4%). Negative nominal changes were seen in the following Federation Units: Roraima (-7.7%), Amapá (-6.3), Piauí (-4.9%), Espírito Santo (-3.2%), Acre (-2.8%) and Sergipe (-1.6%). Analyzing the relative and absolute composition of the index of services by Federation Units, the highlights are São Paulo, with 36.8% of relative contribution and 2.1 pp of absolute contribution, followed by Rio de Janeiro, with 31.5% and 1.8 pp, and the Federal District, with 8.7% and 0.5 pp.

TABLE 4
COMPOSITION OF THE MONTHLY OF SERVICES ACCORDING TO FEDERATION UNITS JUNE 2014