Services sector changes -0.4% in December, closes 2019 at 1.0%

February 13, 2020 09h00 AM | Last Updated: February 14, 2020 05h25 PM

Volume of the services sector changed -0.4% in December 2019 over the previous month, the second consecutive decrease in this type of indicator. It registered a loss of 0.5% between November and December , thus reducing part of the cumulative gain between September and October (2.2%). In the seasonally-unadjusted series, volume of services advanced 1.6% in December 2019 over the same month last year, recording the fourth positive rate in a row. In the cumulative index in the year, volume of services expanded 1.0%, interrupting a sequence of 4 years without growth: 2015 (-3.6%), 2016 (-5.0%), 2017 (-2.8%) and 2018 (0.0%).

Period Change (%)
Volume Nominal Revenue
December 19 / November 19* -0.4 0.3
December 19 / December 18 1.6 4.5
Cumulative in the year 1.0 4.5
Cumulative in the last 12 months 1.0 4.5
*seasonally-adjusted series

Between November and December 2019, the decrease of 0.4% in volume of services was followed by three out of the five activities surveyed. The sector of Transportation, support services for transportation and mailing (-1.5%) negatively stood out, mainly pressed by the segment of Land transportation (-3.7%).

The other retreats came from the sectors of Professional, administrative and complementary services (-1.3%), which offset part of the cumulative gain of 3.1% between August and November, and of Services rendered to families (-1.3%), which registered a loss of 3.4% in the last two months of the year.

In contrast, Other services (3.4%) posted the most significant positive result, accruing a growth of 5.6% over the last two months, whereas Information and communication services (0.4%) recovered nearly the entire drop reported in the previous month (-0.6%).

Still in the seasonally-adjusted series, the quarterly moving average index for the total volume of services remained stable (0.0%) in the quarter ended in December 2019 against the previous month, after three months of advances of same magnitude (0.7%).

Among the sectors, that of Other services (1.8%) registered the most intense positive result in the moving quarter, doubling the advance that had been reported in November (0.9%). It was followed by Information and communication services (0.4%), which reported a positive behavior since May 2019.

On the other hand, three activities retreated, interrupting sequences of positive rates: services rendered to families (-0.6%), professional, administrative and complementary services (-0.4%) and transportation, support activities for transportation and mailing (-0.3%).

Compared with December 2018, the advance of 1.6% in volume of services was followed by three out of the five activities surveyed and by 44% of the 166 types of services surveyed. Among the activities, the sector of Information and communication services (3.2%) 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; of Development and licensing of customizable computer programs; of Technical support, maintenance and other IT services; and of Edition associated with book printing. The other advances were in Other services (11.3%) and Professional, administrative and complementary services (2.3%).

Conversely, the sectors of Transportation, support services for transportation and mailing (-1.4%) and Services rendered to families (-3.2%) registered the negative results, mainly pressed by the smaller revenue of the enterprises of road and train transportation (cargo); of pipeline transportation; of road transportation of passengers; of administration of ports and terminals; of airport operations and of restaurants and hotels.

In the cumulative index between January and December 2019, the advance of 1.0% comprised positive rates in four out of the five activities and 55.4% 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 (5.8%), Services rendered to families (2.6%) and Professional, administrative and complementary services (0.7%), mainly explained by larger revenues received by enterprises in the sectors of brokerage firms, administration of stock markets and organized counter markets; and by insurance, complementary welfare and health brokers.

Conversely, the only negative influence on the cumulative index from in the year stood with the segments of Transportation, support activities to transportation and mailing (-2.5%), mostly pressed by the retreat in the revenue of road and train transportation of cargo, airport operation, and road and air collective transportation of passengers.

Monthly Survey of Services - Volume of Services, according to the dissemination activities - December 2019 - Change (%)
Dissemination Activities Month/Previous
month (1)
Monthly (2) Cumulative
in the year (3)
Last
12 months (4)
OCT NOV DEC OCT NOV DEC JAN-OCT JAN-NOV JAN-DEC Up to OCT Up to NOV Up to DEC
Volume of Services - Brazil 0.7 -0.1 -0.4 2.8 1.9 1.6 0.8 0.9 1.0 0.8 0.9 1.0
1. Services rendered to families 1.7 -2.1 -1.3 2.6 0.8 -3.2 3.5 3.2 2.6 3.4 3.2 2.6
1.1 Lodging and food services 2.6 -2.6 -0.8 3.4 1.2 -2.8 3.6 3.4 2.8 3.7 3.5 2.8
1.2 Other services rendered to families -1.4 -0.7 -4.9 -2.2 -1.4 -5.9 2.7 2.3 1.5 2.1 1.8 1.5
2. Information and communication services 1.7 -0.6 0.4 5.1 3.9 3.2 3.2 3.3 3.3 3.0 3.2 3.3
2.1 Information and communication technology services (ICT) 0.5 0.2 0.6 2.7 3.2 3.3 3.7 3.7 3.7 3.7 3.7 3.7
2.1.1 Telecommunications -0.3 0.1 -0.8 -0.9 -1.2 -1.6 -0.7 -0.8 -0.8 -0.8 -0.9 -0.8
2.1.2 Information technology services 2.4 0.4 3.4 10.1 12.1 11.2 13.3 13.2 13.0 13.4 13.6 13.0
2.2 Audiovisual services 6.3 -2.1 -0.7 22.7 8.3 2.6 -0.6 0.3 0.5 -2.0 -0.3 0.5
3. Professional, administrative and complementary services 0.1 0.0 -1.3 2.6 3.1 2.3 0.2 0.5 0.7 -0.3 0.1 0.7
3.1 Technical-professional services 2.6 -0.1 -1.7 8.7 14.2 9.3 1.2 2.4 3.1 -0.3 1.2 3.1
3.2 Administrative and complementary services -1.2 -0.5 -1.0 0.6 -0.7 -0.5 -0.1 -0.2 -0.2 -0.2 -0.3 -0.2
4. Transportation, support activities for transportation and mailing 1.6 -0.9 -1.5 0.5 -1.8 -1.4 -2.7 -2.6 -2.5 -2.2 -2.4 -2.5
4.1 Land transportation 1.6 -2.3 -3.7 -0.4 -2.4 -6.1 -2.4 -2.4 -2.7 -1.9 -2.1 -2.7
4.2 Water transportation 2.6 1.4 -1.8 2.5 5.1 3.1 2.4 2.6 2.7 2.1 2.4 2.7
4.3 Air transportation 1.6 -3.2 9.1 -1.2 -2.1 12.6 -7.2 -6.8 -5.3 -5.6 -6.2 -5.3
4.4 Armazenagem. serviços auxiliares aos transportes e correio 2.2 -1.3 0.2 2.0 -2.1 2.2 -3.0 -2.9 -2.5 -2.7 -2.9 -2.5
5. Other services -0.2 2.2 3.4 4.2 6.6 11.3 5.2 5.3 5.8 4.8 5.0 5.8
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

SP and RJ grow, though most places retreat in December

Between November and December 2019, 16 out of the 27 Federation Units recorded a retraction in volume of services, led by Minas Gerais (-2.1%), the Federal District (-2.7%), Mato Grosso (-5.6%), Paraná (-1.3%) and Bahia (-2.3%). On the positive side, the highlights were São Paulo (0.4%) and Rio de Janeiro (0.7%), which accrued a gain of 2.9% and 4.5%, respectively, between September and December 2019.

In relation to December 2018, only 12 out of the 27 Federation Units advanced. The major positive contributions were made by São Paulo (3.8%) and Rio de Janeiro (6.5%), which increased in most sectors surveyed. On the other hand, the most important negative influences on the index came from Mato Grosso (-14.9%), the Federal District (-5.9%), Paraná (-3.7%), Minas Gerais (-2.2%) and Bahia (-5.2%).

In the cumulative index between January and December 2019, only 13 out of the 27 Federation Units also expanded the real revenue of services. The major positive impact in regional terms was in São Paulo (3.3%), followed by Amazonas (3.9%), Santa Catarina (1.2%) and Mato Grosso do Sul (3.2%). Conversely, Paraná (-2.3%) and Mato Grosso (-7.1%) posted the most relevant negative influences on the national index.

Tourism activities grow 1.5% in the month and accrue rise of 2.6% in the year

The index of tourism activities expanded 1.5% in December 2019 over the immediately previous month, after retracting 2.3% in November. In regional terms, half (six) of the 12 Federation Units surveyed followed the growth registered in Brazil, highlighted by the advances coming from São Paulo (0.5%) and Paraná (2.6%), followed by Minas Gerais (1.3%) and Pernambuco (2.3%). In contrast, the major negative results came from Rio Grande do Sul (-2.0%) and Bahia (-1.4%).

Comparing with December 2018, the volume of tourism activities in Brazil rose 3.4%, mainly leveraged by the increase in the revenue of enterprises of car rental and air transportation of passengers. Conversely, the main negative influence on tourism activities came from the segment of restaurants. Seven out of the 12 Federation Units in which the indicator is measured registered an advance in tourism services, highlighted by São Paulo (5.9%) and followed by Minas Gerais (6.0%) and Rio de Janeiro (3.1%). On the other hand, the most important negative impacts came from Pernambuco (-3.9%) and Bahia (-2.1%).

In the cumulative indicator in the year, 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 main negative influence 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%), Rio de Janeiro (2.4%), Minas Gerais (2.8%) and Ceará (4.8%). On the other hand, the Federal District (-6.2%), Paraná (-3.1%) and Santa Catarina (-2.3%) posted the major negative influences.