In June, services sector shrinks (-1.0%)

August 09, 2019 09h00 AM | Last Updated: August 21, 2019 10h44 AM

The volume of services in Brazil shrank 1.0% in June 2019, in comparison with the previous month (seasonally-adjusted series), eliminating, thus, the cumulative gain of 0,5% seen between April and May. Compared to June 2018 (non-adjusted series), the volume of services fell 3.6%.

Period Change (%)
   
Volume Nominal Revenue
June 19 / May 19* -1.0 -1.1
June 19 / June 18 -3.6 0.4
Cumulative January-June 0.6 4.3
Cumulative last 12 months 0.7 4.1
Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria 
   *seasonally-adjusted series

The cumulative index of the year grew 0.6%, with a slight downturn in comparison with the second half of  2018 (0.8%). The cumulative index in 12 months, going from 1.1% in May to 0.7% in June 2019, went back to loss of dynamism.

The data are from the Monthly Survey of Services (PMS). See the complete publication and further information in the support material.

The withdrawal of 1.0% in volume of services observed from May to June 2019 was followed up by all five investigated activities, with a highlight to information and communication services (-2.6%), which offset part of the profits accumulated (3.2%) between April and May.

The other decreases were from transportation, support activities for transportation and mailing (-1.0%), other services (-2.3%), professional, administrative and complementary services (-0.1%) and other services rendered to families (-0.2%). The first one achieved the third consecutive negative rate, accumulating losses of 2.4%; the second one eliminated a good part of an advance of 2.6% recorded in May; and the last two, although with slight negative changes presented this month, remained with a cumulative profit of 1.1% and of 2.1%, respectively, between March and June.

Also in the seasonally adjusted series, the quarterly moving average of the volume of services shrank 0.2% in the quarter closed in June 2019 and kept the downward trend that started in January 2019. Among the sectors, transportation, support activities for transportation and mailing (-0.8%) recorded the major negative result this month and kept the negative behavior seen since November 2018.

It is also worth mentioning the fall of 0.2% in other services, eliminating part of the profits of May (0.5%). On the other hand, the expansions this month were in professional, administrative and complementary services (0.3%), services rendered to families (0.1%) and information and communication services (0.1%), the first two have kept an upward trend since December 2018; and the last one recorded the second consecutive negative rate.

Monthly Survey of Services
Indicators of the Volume of Services. by activities 
June 2019 - Change (%)
Activity Month/Previous Month (1) Monthly (2) Cumulative in the year (3) Last 12 months (4)
APR MAY JUN APR MAY JUN JAN-APR JAN-MAY JAN-JUN Up to APR Up to MAY Up to JUN
Volume of Services - Brazil 0.3 0.1 -1.0 -0.7 4.8 -3.6 0.6 1.5 0.6 0.4 1.1 0.7
1. Services rendered to families 0.2 0.4 -0.2 3.6 6.4 5.7 4.3 4.7 4.8 2.1 2.7 3.5
  1.1 Lodging and food services -0.7 0.3 0.3 2.2 5.6 6.4 4.5 4.7 5.0 2.6 3.1 3.9
  1.2 Other services rendered to families 4.1 1.9 -3.8 11.8 10.8 1.7 2.8 4.4 4.0 -0.8 0.4 1.3
2. Information and communitcation services 0.9 2.2 -2.6 2.1 4.8 -1.2 3.0 3.4 2.6 1.6 2.1 1.9
  2.1 Information and communication Tecnology  (ICT) -0.1 2.2 -2.2 3.1 6.0 0.2 4.1 4.5 3.7 2.5 3.2 3.1
    2.1.1 Telecommunications 0.2 0.1 -0.3 -1.3 -1.2 -1.6 -0.1 -0.3 -0.6 -0.8 -0.5 -0.6
    2.1.2 Information Tecnology services 0.6 6.6 -10.1 13.1 21.8 3.6 13.7 15.4 13.1 9.8 11.1 11.0
  2.2 Audiovisual services 1.0 -0.3 -4.0 -3.9 -2.3 -10.3 -4.2 -3.8 -4.9 -4.6 -4.8 -5.9
3. Professional. administrative and complementary services 0.4 0.6 -0.1 -0.7 1.6 -0.8 -0.7 -0.2 -0.3 -1.6 -1.2 -1.0
  3.1 Tecnical-professional services 0.4 -1.3 0.3 3.0 -2.1 -2.7 0.3 -0.2 -0.7 -1.2 -1.6 -1.7
  3.2 Adminstrative and complementary services 2.2 0.6 -0.2 -2.0 2.9 0.0 -1.0 -0.2 -0.2 -1.7 -1.1 -0.7
4. Transportation. support services for transportation -0.8 -0.6 -1.0 -5.0 5.7 -10.9 -2.5 -0.8 -2.7 -0.2 0.9 -0.4
  4.1 Land transportation -1.1 -0.6 0.3 -3.1 10.2 -11.5 -1.4 0.8 -1.4 0.8 2.5 0.9
  4.2 Water transportation 0.7 1.9 -3.1 -1.8 3.3 -2.1 1.4 1.8 1.1 -1.5 -0.7 -0.4
  4.3 Air transportation -10.2 10.8 -4.4 -18.0 -3.6 -18.3 -3.5 -3.5 -6.4 5.4 4.3 0.8
  4.4 Storage. support services for transportation and mailing 0.2 -0.1 -1.2 -5.1 2.4 -9.4 -4.9 -3.4 -4.5 -3.1 -2.4 -3.0
5. Other services -0.9 2.6 -2.3 1.0 9.1 0.5 2.7 3.9 3.3 1.6 2.5 2.2
Source: IBGE. Diretoria de Pesquisas. Coordenação de Indústria            
(1) Base: previous month - com ajuste sazonal
(2) Base: same month a year ago
(3) Base: same period a year ago
(4) Base: 12 previous months

Compared against the same month of previous year, the volume of services were down 3.6% in June 2019, with withdrawals in 3 out of the 5 activities and in 51.8% of the 166 types of investigated services. It is worth highlighting that June 2019 (19) had two business days less than June 2018 (21), resulting in a lower number of service rendering contracts. Another aspect worth highlighting is the overage of demand occurred in June last year, as with the end of the truckers’ strike, in the first days of June 2018, there was an intense shipping of industrial goods and flows of inputs and raw materials, in order to meet the repressed demand of the strike days in the last ten days of May 2018.

Among the activities, transportation, support activities for transportation and mailing (-10.9%) exerted the major negative influence in June 2019. The other retreats ware in information e communication services (-1.2%) and professional, administrative and complementary services (-0.8%). On the other hand, the positive contributions were services rendered to families (5.7%) and other services (0.5%).

In the cumulative index of the first six months of 2019, comparing to the same period in the previous year, the services sector rose 0.6%, expanding in three out of the five activities and 51.8% of the 166 types of investigated services. Among the sectors, information e communication services (2.6%) exerted the major positive impact. The other advances were services rendered to families (4.8%) and other services (3.3%). On the other hand, the negative influences were in services rendered to families (-2.7%), followed by professional, administrative and complementary services (-0.3%).

Volume of services edged down in 19 out of the 27 Federation Units

Compared to the previous month (seasonally adjustment series), 19 out of the 27 Federation Units recorded withdrawal in volume of services in June 2019. Among the regions which indicated negative results this month, São Paulo (-1.6%) and Rio de Janeiro (-3.4%) were highlightgs, the first one returned part of a profit of 1.9% accumulated in the last two months; and the second one eliminated the entire expansion of 2.3% accumulated between March and May. It is worth mentioning the drops of Santa Catarina (-4.9%) and the Federal District (-4.2%). Conversely, the major positive result in regional terms was Mato Grosso (4.2%), which recovered from a decline of 1.8% in May.

Compared to June 2018, there was a decline in 20 out of the 27 Federation Units. The major negative influences were Rio de Janeiro (-9.7%), which recorded a withdrawal in four of the five investigated sectors, and São Paulo (-1.5%), which recorded an withdrawal only in transportation, support activities for transportation and mailing (-14.0%). It is worth highlighting the retreats of Paraná (-6.2%), Federal District (-9.3%) and Minas Gerais (-3.5%). On the other hand, the major positive contributions were Pernambuco (2.6%) and Amazonas (4.0%).

In the cumulative index between January and June 2019, compared to same period in the previous year, only eight of Federation Units also indicated expansion in the actual revenue from services. The major positive impact in regional terms were São Paulo (3.7%), followed by Santa Catarina (3.1%) and Minas Gerais (0.6%). On the other hand, Rio de Janeiro (-5.3) registered the most relevant negative influence.

Tourism activities index changes -0.2%

In June 2019, the tourism activities index indicated negative changes (-0.2%) compared to previous month, after advances of 1.6% in May. Regionally, six of twelve Federation Units followed the downward trend noticed in Brazil, with a highlight to the retreats in the Federal District (-5.4%), followed by Rio de Janeiro (-1.0%) and Paraná (-2,3%). On the other hand, the major positive results were São Paulo (0.4%) and Santa Catarina (4.6%).

The volume of tourism activities in Brazil advanced 2.6% comparing June 2019 to June 2018, due, mainly, to the growth of the revenue from hotels, car rentals and restaurants. Furthermore, air transportation indicated the major negative influence in tourism activities.

In regional terms, nine of the twelve Federation Units where the indicator is investigated showed growth in tourism services, with a highlight to São Paulo (3.8%), followed by Minas Gerais (5.2%), Ceará (10.9%) and Bahia (6.9%). Moreover, the major negative impact was the Federal District (-15.4%).

In the cumulative index between January and June 2019, the especial aggregate of tourism activities indicated growth of 3.1% compared to the same period in the previous year, due, mainly, to hotels, car rentals and catering services and other food services. Conversely, the major negative impact was air transportation of passengers.

Regionally, seven of the twelve investigated places registered positive rates, with a highlight to São Paulo (7.7%), followed by Ceará (9.9%). On the other hand, the Federal District (-7.9%) and Santa Catarina (-3.9%) recorded the major negative influences in the cumulative index of the year for tourism activities.