Services Sector: -0.1% in November 2019

January 14, 2020 09h00 AM | Last Updated: January 21, 2020 05h34 PM

In the seasonally-adjusted series, the services sector in Brazil registered a slight negative change in November 2019 (-0.1%) against the previous month, after a cumulative increase of 2.2% between September and October. In the seasonally-unadjusted series, the total volume of services advanced 1.8% in November 2019 against the same month a year ago, reaching the third positive rate in a row.

Period Change (%)
Volume Nominal Revenue
November 19 / October 19* -0.1 -0.5
November 19 / November 18 1.8 5.0
Cumulative in January-November 0.9 4.4
Cumulative in the Last 12 Months 0.9 4.4
*seasonally-adjusted series 

Both the cumulative indicator in 2019 and the cumulative indicator in 12 months rose 0.9%, the latter gaining pace against August (0.6%), September (0.7%) and October (0.8%).

The decrease of 0.1% in volume of services between October and November 2019 was followed by three out of the five activities investigated, highlighted by the retreat in the sector of transportation, support activities for transportation and mailing (-0.7%), pressed by the segments of land transportation (-1.6%), storage and support activities for transportation (-1.1%) and air transportation (-3.3%). The other declines came from the sectors of services rendered to families (-1.5%), which completely offset the advance recorded in the previous month (1.5%) and information and communication services (-0.4%), in which part of the gain of 1.7% reported in October was offset. On the other hand, "other services" (1.7%) posted the most expressive positive figure this month, followed by professional, administrative and complementary services (0.1%), which registered the fourth consecutive positive rate, accruing a gain of 3.2% in this period.

Still in the seasonally-adjusted series, the quarterly moving average index ended in November 2019 expanded 0.7% against the previous month and maintained the expanding pace reported in September and October (both of them with same rate of 0.7%). The sector of transportation, support activities for transportation and mailing, which had been showing a positive behavior since July, recorded the most intense positive figure (0.8%) and was followed by professional, administrative and complementary services (0.7%), which reached the third positive rate in a row, and other services (0.7%), which offset the retreat of the same magnitude reported in October (-0.7%). Another two activities also expanded in November, though less intensely: information and communication services (0.3%), which maintained a predominantly upward trend since May 2019, and those rendered to families (0.3%), which registered the second positive result in a row.

Indicators of Volume of Services, according to dissemination activities - November - Change (%)
Dissemination Activities Month/Previous month (1) Monthly (2) Cumulative in the year (3) Last 12 months (4)
SEP OCT NOV SEP OCT NOV JAN-SEP JAN-OCT JAN-NOV Up to SEP Up to OCT Up to NOV
Volume of Services - Brazil 1.5 0.8 -0.1 1.6 2.8 1.8 0.6 0.8 0.9 0.7 0.8 0.9
1. Services rendered to families 0.9 1.5 -1.5 -0.1 2.6 1.3 3.6 3.5 3.3 3.4 3.4 3.3
1.1 Lodging and food services 0.9 2.2 -1.8 -0.6 3.4 1.8 3.7 3.6 3.5 3.6 3.7 3.5
1.2 Other services rendered to families 2.2 -1.4 0.1 2.6 -2.2 -1.1 3.2 2.7 2.3 2.4 2.1 1.9
2. Information and communication services -0.5 1.7 -0.4 2.6 5.1 4.0 3.0 3.2 3.3 2.7 3.0 3.2
2.1 Information and communication technology services (ICT) -0.6 0.5 0.1 3.0 2.7 3.1 3.9 3.7 3.7 3.9 3.7 3.7
     2.1.1 Telecommunications 0.8 -0.2 0.1 -0.5 -0.9 -1.2 -0.7 -0.7 -0.8 -0.6 -0.8 -0.9
     2.1.2 Information technology
     services
-3.1 2.7 0.2 10.0 10.1 11.8 13.7 13.3 13.2 13.3 13.4 13.6
2.2 Audiovisual services -1.2 6.2 -0.8 -0.3 22.7 9.9 -3.0 -0.6 0.4 -4.9 -2.0 -0.1
3. Professional, administrative and complementary services 1.8 0.1 0.1 3.2 2.6 2.8 0.0 0.2 0.5 -0.5 -0.3 0.1
3.1 Technical-professional services 6.1 2.9 -0.3 6.1 8.7 13.6 0.3 1.2 2.4 -1.1 -0.3 1.2
3.2 Administrative and complementary services 1.5 -1.1 -0.6 2.2 0.6 -0.9 -0.2 -0.1 -0.2 -0.3 -0.2 -0.3
4. Transportation, support activities for transportation and mailing 1.7 1.4 -0.7 -1.8 0.5 -1.9 -3.1 -2.7 -2.6 -2.0 -2.2 -2.4
4.1 Land transportation 2.5 1.4 -1.6 -2.0 -0.4 -2.4 -2.7 -2.4 -2.4 -1.6 -1.9 -2.1
4.2 Water transportation -3.6 2.8 0.5 -1.9 2.5 3.7 2.3 2.4 2.5 1.8 2.1 2.3
4.3 Air transportation 18.3 1.5 -3.3 -5.1 -1.2 -2.2 -7.9 -7.2 -6.8 -4.3 -5.6 -6.2
4.4 Storage services, support activities for transportation and mailing activities 1.6 2.0 -1.1 -0.6 2.0 -2.2 -3.5 -3.0 -2.9 -3.0 -2.7 -3.0
5. Other services 0.6 -0.2 1.7 11.0 4.2 6.1 5.3 5.2 5.2 4.6 4.8 5.0
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

Compared with the same month last year, volume in the services sector advanced 1.8% in November 2019, with an expansion in four out of the five activities of dissemination and in 50.6% of the 166 types of services investigated.

The sector of information and communication services (4.0%) exerted the most relevant positive contribution, leveraged, to a great extent, by the increase in the revenue of the enterprises of portals, content provision and search tools on the Internet; open TVs; technical support, maintenance and other IT services; book edition and printing; non-customized software development and licensing; and cable TVs.

The other advances came from professional, administrative and complementary services (2.8%), other services (6.1%) and services rendered to families (1.3%), explained, to a great extent, by the increase in the revenue of the enterprises in the sectors of technical activities related to architecture and engineering; car rental; engineering services; organization, promotion and management of fairs, conferences and conventions; consulting in business management; and rental of temporary workforce, in the first sector; of brokerage firms; insurance, complementary welfare and health brokers; administration of stock markets and organized counter markets, in the second; and of hotels; catering services and other services of cooked food; and fitness activities.

Conversely, the only negative figure came from transportation, support activities for transportation and (-1.9%), mainly pressed by the reduced revenue of the enterprises of road transportation of cargo; management of ports and terminals; and road transportation of passengers.

In the cumulative index in the first 11 months of 2019, over the same period in the previous year, the services sector advanced 0.9%, with an expansion in four out of the five activities and in 56.0% of the 166 types of services surveyed.

Among the sectors, information and communication services (3.3%) exerted the major positive impact on the overall index, leveraged, to a great extent, by the increase in the revenue of the enterprises in the segments of web portals, content providers and other information services on the Internet, development and licensing of customizable computer programs, information technology consulting and technical support, maintenance and other services in information technology.

The other advances came from other services (5.2%) and services rendered to families (3.3%) and professional, administrative and complementary services (0.5%), mainly explained by the increasing revenue of the enterprises in the sectors of brokerage firms; insurance, complementary welfare and health brokers; administration of stock markets and organized counter markets; and support activities to forestry, in the first sector; and of hotels; catering services and other services of cooked food; restaurants; and fitness activities, in the second; and car rental, technical activities related to architecture and engineering, temporary labor force rental, machinery an equipment rental, activities of billing and registration information, and organization, promotion and management of fairs, conferences and conventions.

Conversely, the only negative influence on the cumulative index from January to November 2019 stood with the segments of transportation, support activities to transportation and mailing (-2.6%), mostly pressed by the retreat in the revenue of road transportation of cargo, airport operation, and road and air collective transportation of passengers.

Services retreat in 16 of 27 Federation Units

In regional terms, most (16) of the 27 Federation Units registered a retraction in volume of services in November 2019, compared with the immediately previous month. Among the places that recorded negative results this month, the highlights were Mato Grosso (-5.7%), Minas Gerais (-1.1%), Pernambuco (-3.0%), Santa Catarina (-1.8%) and Espírito Santo (-3.5%). In contrast, the major positive figures in regional terms came from Rio de Janeiro (0.8%) and the Federal District (0.9%).

In the comparison with the same month a year ago, the advance of the volume of services in Brazil (1.8%) was followed by 13 out of the 27 Federation Units. The major positive contributions were Rio de Janeiro (10.2%) and São Paulo (1.8%), both of them increasing in four out of the five sectors investigated, highlighted by information and communication services. In common, the sector of transportation retracted in both states, pressed by the reduced performance of the road modal of cargo. On the other hand, the most important negative influence to the overall index came from Mato Grosso (-13.2%), which dropped in three out of the five sectors surveyed, highlighted by the losses coming from cargo transportation (road and inland navigation) and road concessionaires.

In the cumulative index between January and November 2019 over the same period in the previous year, the advance in the volume of services in Brazil (0.9%) was concentrated among the places surveyed, since only 12 out of the 27 Federation Units also expanded their real revenue of services. The major positive impact in regional terms was in São Paulo (3.2%), followed by Santa Catarina (1.3%), Amazonas (3.4%) and Mato Grosso do Sul (3.4%). Conversely, Rio de Janeiro (-1.2%), Paraná (-2.2%) and Mato Grosso (-6.6%) posted the most relevant negative influences on the overall index.

Index of tourism activities retreats 1.9%

In November 2019, the index of tourism activities retracted 1.9% over the immediately previous month after registering two consecutive positive rates, a period in which it accrued a gain of 6.9%.

In regional terms, eight out of the 12 Federation Units followed this drop in Brazil, highlighted by the retreats from Rio de Janeiro (-4.0%), São Paulo (-1.1%) and Pernambuco (-7.0%). On the other hand, the major positive figure came from Ceará (2.6%).

Comparing with September 2018, the volume of tourism activities in Brazil rose 3.8%, mainly leveraged by the increase in the revenue of enterprises of car rental. Conversely, the main negative influence on tourism activities came from the segment of air transportation of passengers.

In regional terms, seven out of the 12 Federation Units in which the indicator is measured registered an advance in tourism services, highlighted by São Paulo (5.8%) and followed by Rio de Janeiro (4.8%), Minas Gerais (4.2%) and Rio Grande do Sul (5.8%). On the other hand, the most important negative impacts came from Pernambuco (-6.4%) and Paraná (-4.1%).

In the cumulative indicator between January and November 2019, the special aggregate of tourism activities rose 2.6% 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 major negative impact came from the segment of air transportation of passengers.

In regional terms, nine out of the 12 places surveyed also registered positive rates, highlighted by São Paulo (5.1%) and followed by Rio de Janeiro (2.3%), Minas Gerais (2.5%) and Ceará (5.4%). On the other hand, the Federal District (-6.8%) and the states of Paraná (-3.4%) and Santa Catarina (-2.5%) posted the major negative influences in the cumulative index in the year for the tourism activities.