Services sector changes –0.2% in August

October 11, 2019 09h00 AM | Last Updated: October 15, 2019 11h13 AM

In the seasonally-adjusted series, the services sector changed -0.2% in August 2019 in relation to the previous month, after advancing 0.7% in July. In the seasonally-unadjusted series, the sector retreated 1.4% over August 2018, the fourth non-sequential negative rate this year.

Indicators of the Monthly Survey of Services
Brazil - August 2019
Period Change (%)
Volume Nominal Revenue
August 19 / July 19* -0.2 -0.1
August 19 / August 18 -1.4 2.3
Cumulative January-August 0.5 4.1
Cumulative in the last 12 months 0.6 3.9
Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria
*seasonally-adjusted series

Services advanced 0.5% in the cumulative rate in the year, though with a slight loss of dynamism compared with the first seven months of 2019 (0.8%). Having advanced 0.6% in the cumulative index over the last 12 months, the sector lost pace compared with June (0.7%) and July (0.9%).

These data are from the Monthly Survey of Services - PMS. Please see the support material for more information.

The drop of 0.2% in volume of services reported between July and August 2019 was followed by three out of the five activities investigated, highlighted by the sector of transportation, support activities for transportation and mailing (-0.9%), which completely offset the cumulative gain of 0.8% between June and July.

The other retreats came from the sectors of other services (-2.7%) and services rendered to families (-1.7%), the former offsetting part of the advance of 5.1% registered in July, and the latter recording the third consecutive negative rate and a cumulative loss of 2.7%.

On the other hand, information and communication services (0.4%) and professional, administrative and complementary services (0.5%) posted the single positive rates of August, the former accruing a gain of 2.3% in the last two month, and the latter recovering part of the loss of 1.7% reported between June and July.

Still in the seasonally-adjusted series, the evolution of the quarterly moving average of volume of services changed negatively (-0.1%) in the quarter ended in August, offsetting the rise of same magnitude reported in July.

Among the sectors, that of services rendered to families (-0.9%) registered the most relevant negative figure this month, stepping up the pace of the fall reported in July (-0.2%). Professional, administrative and complementary services was the other activity that dropped (-0.4%), repeating the magnitude of the drop reported in July. All the other three sectors remained stable in August (0.0%), with information and communication services and other services hitting the fourth consecutive month without negative results, whereas the sector of transportation, support activities for transportation and mailing remained stable this month, after changing positively in July (0.3%).

Monthly Survey of Services
Volume of Services Indicators, according to the dissemination activities
August 2019 - Change (%)
Dissemination Activities Month/Previous month (1) Monthly (2) Cumulative
in the year (3)
Last 12 months (4)
JUN JUL AUG JUN JUL AUG JAN-JUN JAN-JUL JAN-AUG Up to JUN Up to JUL Up to AUG
Volume of Services - Brazil -0.7 0.7 -0.2 -3.5 1.8 -1.4 0.6 0.8 0.5 0.7 0.9 0.6
1. Services rendered to families -0.6 -0.3 -1.7 5.7 2.9 0.9 4.8 4.5 4.1 3.5 3.8 3.4
1.1 Lodging and food services 0.1 -0.3 -2.0 6.4 2.7 1.2 5.0 4.6 4.2 3.9 4.1 3.7
1.2 Other services rendered to families -3.9 -1.0 -1.8 1.6 4.0 -0.9 3.9 3.9 3.3 1.3 1.9 2.0
2. Information and communication services -2.1 1.9 0.4 -1.0 3.7 4.6 2.6 2.8 3.0 1.9 2.2 2.7
2.1 Information and communication technology services (ICT) -1.7 1.5 0.4 0.3 4.5 4.8 3.8 3.9 4.0 3.1 3.4 3.9
2.1.1 Telecommunications -0.1 0.1 -0.6 -1.4 -1.0 -1.7 -0.5 -0.6 -0.7 -0.6 -0.6 -0.6
2.1.2 Information technology services -10.2 8.7 1.7 3.5 16.4 18.6 13.1 13.6 14.2 11.0 12.0 13.6
2.2 Audiovisual services -3.3 2.8 2.2 -9.3 -1.1 3.2 -4.8 -4.2 -3.3 -5.8 -5.7 -5.1
3. Professional, administrative and complementary services -0.4 -1.3 0.5 -1.0 0.9 -2.6 -0.3 -0.2 -0.5 -1.0 -0.7 -0.9
3.1 Technical-professional services 0.6 -1.3 -1.6 -2.2 2.2 -2.5 -0.6 -0.2 -0.5 -1.7 -1.5 -1.9
3.2 Administrative and complementary services -0.5 -0.3 0.2 -0.5 0.5 -2.7 -0.3 -0.1 -0.5 -0.7 -0.4 -0.6
4. Transportation, support activities for transportation and mailing 0.1 0.7 -0.9 -10.8 -1.5 -7.9 -2.6 -2.5 -3.2 -0.4 -0.7 -1.8
4.1 Land transportation 0.1 0.8 -1.3 -11.5 -4.6 -7.8 -1.4 -1.9 -2.8 0.9 -0.1 -1.4
4.2 Water transportation -3.1 6.0 0.3 -2.2 12.8 4.3 1.1 2.7 2.9 -0.4 1.5 2.0
4.3 Air transportation -4.4 -4.8 -5.2 -18.3 -1.1 -23.2 -6.4 -5.6 -8.3 0.8 1.3 -2.4
4.4 Storage services, support activities for transportation and mailing activities -0.7 2.8 -0.8 -9.1 1.1 -5.7 -4.4 -3.6 -3.9 -3.0 -2.6 -3.1
5. Other services -2.2 5.1 -2.7 0.9 10.4 5.7 3.4 4.4 4.6 2.3 3.0 3.4
Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria
(1) Base: immediately previous month - seasonally adjusted
(2) Base: same month a year ago
(3) Base: same period a year ago
(4) Base: 12 previous months

In the comparison with the same month a year ago, volume of services retreated 1.4% in August 2019, retracting in two out of the five activities and in 52.4% of the 166 types of services investigated. It is worth highlighting that August 2019 (22) had one less business day than August 2018 (23), which contributed to less services contracts.

Among the activities, the sector of transportation, support activities for transportation and mailing (-7.9%) exerted the most relevant negative influence in August 2019. The other retreat was in the sector of professional, administrative and complementary services (-2.6%). Conversely, the major positive contribution came from the sector of information and communication services (4.6%). The other advances came from other services (5.7%) and services rendered to families (0.9%).

In the cumulative index in the first eight months of 2019, over the same period in the previous year, the services sector increased 0.5%, with an expansion in three out of the five activities and in 55.4% of the 166 types of services surveyed. Among the sectors, information and communication services (3.0%) exerted the major positive impact on the overall index. The other advances came from services rendered to families (4.1%) and other services (4.6%). On the other hand, the negative influences came from the segments of transportation, support activities for transportation and mailing (-3.2%), followed by professional, administrative and complementary services (-0.5%).

Volume of services falls in 19 of 27 Federation Units

Of the 27 Federation Units, 19 recorded a drop in volume of services in August compared with July. Among the places that posted negative figures, the highlight was São Paulo (-1.0%), followed by Rio de Janeiro (-0.9%) and the Federal District (-3.3%), the first completely offsetting the gain reported in July (1.0%), and the last two ones partially offsetting the advances registered in the previous month: 3.1% and 6.6%. It is also worth mentioning the retreats in Minas Gerais (-1.0%), Ceará (-2.6%) and Paraná (-0.8%). Conversely, the major positive figures came from Espírito Santo (2.8%) and Bahia (1.3%), both of them reaching the second consecutive positive rate and a cumulative expansion of 3.7% and 3.8%.

Compared with the same month last year, 20 out of the 27 Federation Units also dropped. The major negative influences came from the Federal District (-7.6%), Paraná (-4.0%), Rio Grande do Sul (-4.7%) and Rio de Janeiro (-1.4%). It is worth mentioning that the sector of transportation, support activities for transportation and mailing exerted the most important negative impact in all those places. On the other hand, the most relevant positive contributions came from Espírito Santo (8.0%) and Mato Grosso do Sul (5.6%), both of them increasing in four out of the five sectors surveyed.

In the cumulative index between January and August 2019 against the same period a year ago, only 10 out of the 27 Federation Units expanded the real revenue of services. The major positive impact was in São Paulo (3.2%), followed by Santa Catarina (2.4%) and Amazonas (2.7%). Conversely, Rio de Janeiro (-4.0%) recorded the most relevant negative influence on the national index.

Index of tourism activities falls 4.2%

The index of tourism activities dropped 4.2% in August 2019 over the previous month, after rising 0.2% in July. In regional terms, 11 out of the 12 Federation Units followed this drop, highlighted by São Paulo (-7.1%), followed by Rio de Janeiro (-2.3%) and Paraná (-4.8%). Conversely, the only positive figure came from Bahia (0.9%).

Comparing August 2019 with August 2018, the tourism activities declined 2.9%, mainly pressed by the falling revenue of the air carriers.                          On the other hand, the segments of car rental and hotels registered the major positive contributions to the tourism activity.

In regional terms, eight out of the 12 Federation Units investigated registered a decline in services related to tourism, highlighted by São Paulo (-4.5%), followed by Paraná (-10.5%) and the Federal District (-13.4%). On the other hand, the most important positive impacts came from Rio de janeiro (1.1%), Bahia (2.8%) and Minas Gerais (1.7%).

In the cumulative indicator between January and August 2019, the special aggregate of tourism activities rose 2.4% over the same period last year, mostly leveraged by the sectors of car rental, hotels, and catering services and other services of cooked food. Conversely, the main negative influence came from the segment of air transportation of passengers.

Regionally, eight out of the 12 places surveyed also registered positive rates, highlighted by São Paulo (5.5%), followed by Ceará (6.4%) and Minas Gerais (1.7%). On the other hand, the Federal District (-7.8%), Paraná (-3.1%) and Santa Catarina (-3.2%) posted the major negative influences in the cumulative index in the year for the tourism activities.