Services sector grows 0.6% in January

March 25, 2020 09h00 AM | Last Updated: March 27, 2020 12h24 PM

In the seasonally-adjusted series, the services sector in Brazil expanded 0.6% in January 2020 over December 2019. In the seasonally-unadjusted series, volume of services advanced 1.8% in January 2020 in relation to January 2019., hitting its fifth positive rate in a row. Having advanced 1.0% in January 2020, the cumulative index over the last 12 months repeated the result of last December and maintained the upward trend started in September 2019 (0.7%).

Indicators of the Monthly Survey of Services
Brazil - January 2020
Period Change (%)
Volume Nominal Revenue
January 20 / December 19* 0.6 -0.3
January 20 / January 19 1.8 4.3
Cumulative January-January 1.8 4.3
Cumulative Over the Last 12 Months 1.0 4.4
Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria
*seasonally-adjusted series

The expansion of 0.6% in volume of sales between December 2019 and January 2020 was followed by four out of five activities investigated, highlighted by the sector of transportation, support services for transportation and mailing, which advanced 2.8% and recovered the cumulative loss (-2.8%) in the last two months of 2019.

The other advances came from the sectors of other services (1.2%), which accrued a gain of 7.6% between September 2019 and January 2020; of services rendered to families (0.7%), which recovered part of the loss of 2.1% registered between November and December; and of professional, administrative and complementary services (0.1%), which could not reverse the drop in December 2019 (-1.8%).

On the other hand, the only  negative result came from information and communication services: -0.9%, thus offsetting the increase of 0.3% recorded in the previous month.

Still in the seasonally-adjusted series, the quarterly moving average for volume of services was stable (0.0%) in the quarter ended in January 2020 against the level of the previous month, repeating the result of December 2019 (0.0%). The sector of other services (2.2%) posted the only rise in this period, maintaining the gains of pace against November (1.0%) and December (1.8%).

Conversely, three activities retreated in the quarter ended in January 2020. Professional, administrative and complementary services (-0.6%) and those rendered to families (-0.5%) registered the second negative rate in a row. In contrast, information and communication services (-0.4%) interrupted the positive behavior reported since May 2019.

Still comparing moving quarters, the sector of transportation, support services for transportation and mailing (0.0%) remained stable after decreasing in December 2019 (-0.4%).

Compared with the same month last year, volume in the services sector advanced 1.8% in January 2020, with an expansion in all the five activities and in 50.6% of the 166 types of services investigated.

Among the activities, the sectors of other services (10.0%) and information and communication services (2.0%) exerted the most relevant positive contributions in January 2020, leveraged, to a large extent, by the increase in the revenue of enterprises of support financial services, in the former sector; and of IT services, open TV and edition and printing of textbooks, in the latter sector.

The other advances were in transportation, support activities for transportation and mailing (0.9%),  professional, administrative and complementary services (0.9%) and services rendered to families (0.3%).

Monthly Survey of Services
Volume of Services Indicators, according to the dissemination activities
January 2020 - Change (%)
Dissemination Activities Month/Previous
 month (1)
Monthly (2) Cumulative in the year (3) Last 12 months (4)
NOV DEC JAN NOV DEC JAN JAN-NOV JAN-DEC JAN-JAN Up to NOV Up to DEC Up to JAN
Volume of Services - Brazil -0.1 -0.5 0.6 1.9 1.5 1.8 0.9 1.0 1.8 0.9 1.0 1.0
1. Services rendered to families -1.9 -0.2 0.7 0.8 -1.6 0.3 3.2 2.8 0.3 3.2 2.8 2.4
1.1 Lodging and food services -2.1 0.4 0.2 1.2 -0.9 0.5 3.4 3.0 0.5 3.5 3.0 2.6
1.2 Other services rendered to families -0.7 -5.4 5.2 -1.4 -6.0 -1.3 2.3 1.5 -1.3 1.8 1.5 1.3
2. Information and communication services -0.5 0.3 -0.9 3.9 3.1 2.0 3.3 3.2 2.0 3.2 3.2 3.1
2.1 Information and communication technology services (ICT) 0.2 0.5 -1.2 3.2 3.2 1.5 3.7 3.7 1.5 3.7 3.7 3.4
2.1.1 Telecommunications 0.1 -1.0 -0.2 -1.2 -2.0 -4.0 -0.8 -0.9 -4.0 -0.9 -0.9 -1.3
2.1.2 Information technology services 0.4 4.2 -2.2 12.1 11.4 12.9 13.2 13.0 12.9 13.6 13.0 13.0
2.2 Audiovisual services -2.1 -0.6 -0.6 8.3 2.6 5.2 0.3 0.5 5.2 -0.3 0.5 1.4
3. Professional, administrative and complementary services 0.0 -1.8 0.1 3.1 1.6 0.9 0.5 0.6 0.9 0.1 0.6 0.7
3.1 Technical-professional services -0.4 -3.2 0.1 14.2 6.9 3.7 2.4 2.9 3.7 1.2 2.9 3.3
3.2 Administrative and complementary services -0.5 -1.0 0.3 -0.7 -0.4 0.0 -0.2 -0.2 0.0 -0.3 -0.2 -0.2
4. Transportation, support activities for transportation and mailing -0.7 -2.1 2.8 -1.8 -1.7 0.9 -2.6 -2.5 0.9 -2.4 -2.5 -2.5
4.1 Land transportation -2.2 -4.6 4.0 -2.4 -6.8 -3.2 -2.4 -2.8 -3.2 -2.1 -2.8 -3.1
4.2 Water transportation 1.5 -1.5 5.2 5.1 3.2 9.9 2.6 2.7 9.9 2.4 2.7 3.3
4.3 Air transportation -3.1 9.1 0.2 -2.1 12.6 8.7 -6.8 -5.3 8.7 -6.2 -5.3 -5.0
4.4 Storage services, support activities for transportation and mailing activities -1.2 0.3 0.6 -2.1 2.3 3.4 -2.9 -2.5 3.4 -2.9 -2.5 -2.0
5. Other services 2.2 3.3 1.2 6.6 11.5 10.0 5.3 5.9 10.0 5.0 5.9 6.2
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

RESULTS BY REGION

In regional terms, 16 out of the 27 Federation Units expanded their volume of services in January 2020 compared with the immediately previous month, following the advance of 0.6% reported for Brazil in the seasonally-adjusted series. The highlights were the Federal District (7.4%), Mato Grosso (14.1%), Minas Gerais (2.2%) and Pernambuco (6.7%). On the other hand, the major negative figures came from São Paulo (-0.3%), Rio Grande do Sul (-1.6%) and Rio de Janeiro (-0.4%).

In the comparison with January 2019, the advance in volume of services in Brazil (1.8%) was followed by only 11 out of the 27 Federation Units. The major positive contribution was recorded by São Paulo (3.3%), followed by Rio de Janeiro (3.3%), the Federal District (5.0%) and Amazonas (10.5%). Conversely, the most important negative influences came from Rio Grande do Sul (-3.5%), Bahia (-3.6%) and Mato Grosso (-5.8%).

SPECIAL AGGREGATE OF TOURISM ACTIVITIES

The index of tourism activities posted a negative change of 0.3% between December 2019 and January 2020, after advancing 1.9% in December 2019. In regional terms, seven out of the 12 Federation Units followed such retraction in Brazil, highlighted by the retreat coming from São Paulo (-2.6%), followed by Minas Gerais (-2.1%) and Espírito Santo (-3.8%).

In contrast, the major positive results came from Rio de Janeiro (2.9%), Paraná (6.8%) and Pernambuco (3.6%).

Comparing January 2020 against January 2019, the index of volume of tourism activities in Brazil rose 3.4%, the fifth consecutive positive rate, mainly leveraged by the increase of the revenue of the enterprises of air transportation of passengers and car rental. Conversely, the main negative influence on tourism activities came from the segment of restaurants.

In regional terms, still comparing with January last year, ten out of the 12 Federation Units in which the indicator is measured registered an advance in the tourism services, highlighted by Rio de Janeiro (9.8%), followed by São Paulo (0.9%) and Paraná (5.5%).

On the other hand, the most important negative impacts came from Espírito Santo (-5.3%) and the Federal District (-2.1%).