Services sector falls 1.0% in February

April 08, 2020 09h00 AM | Last Updated: April 09, 2020 07h21 PM

In February 2020, the volume of services in Brazil fell 1.0% compared to January, in the seasonally adjusted series. This was the sharpest negative result since July 2018 (-3.1%). In the non-adjusted series, in the comparison with February 2019, the volume of services increased 0.7%. In the cumulative result for the year, there was an increase of 1.2% compared to the same period of the previous year. The cumulative index in the last twelve months increased 0.7% in February 2020 and showed a loss of pace compared to January (1.0%). The full publication of the Monthly Survey of Services (PMS) is on the right of this page.

Indicators of the Monthly Survey of Services
Brazil - February 2020
Period Change (%)
Volume Nominal Revenue
February 20 / January 20* -1.0 -0.1
February20 / February 19 0.7 3.8
Cumulative - January-February 1.2 4.0
Cumulative in the last 12 months 0.7 4.1
Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria
*seasonally-adjusted series

The 1.0% decrease in the volume of services, observed from January to February 2020, was accompanied by three of the five dissemination activities investigated, with a highlight to  the setbacks coming from professional, administrative and complementary services (-0.9 %) and information and communication (-0.5%), with the first accumulating a loss of 3.0% in the last three months; and the second registering a drop of 1.3% in the first two months of 2020. The other sector that also recorded  negative result in February was services rendered to families (-0.1%), after an advance of 0.5% in January.

Conversely, the activities of Transportation , support activities for transportation and mailing (0.4%) and other services (0.2%) had the positive rates this month, with the first one accumulating a gain of 3.2 in the first two month of the yer ; and the second one advancing 8.5% between September 2019 and February 2020.

Also in the seasonally adjusted series, the evolution of the quarterly moving average index for the total volume of services showed a negative change of 0.4% in the quarter ended in February 2020 compared to the level of the previous month, thus maintaining the negative behavior since December 2019.

Among the sectors, also in the seasonally adjusted series, the only two negative results came from professional, administrative and complementary services (-1.0%) and information and communication services (-0.4%), with the first intensifying the rate of decline compared to December 2019 (-0.6%) and January 2020 (-0.7%); and the second, repeating the decline of the same strength seen in January (-0.4%).

Conversely, three activities advances i February 2020: other services (1.7%) Transportation , support activities for transportation and mailing (0.4%) and services rendered to families (0.1%) with a highlight to the first one which has kept the positive behavior since November 2019.

In the comparison with the same month a year ago, the volume of the services sector advances 0.7% in January 2020, with expansion in four of the five activities of dissemination, but in just 47.0% of the 166 types of services investigated.

Among the activities, the segments of other services (9.3%) and Transportation , support activities for transportation and mailing (1.8%) registered the most relevant positive contributions in February 2020, driven, to a large extent, by the increase in the income of securities and commodities brokerage firms; collection of non-hazardous waste of domestic, of urban or industrial origin; administration of stock exchanges and organized over-the-counter markets; real estate activities; administration of funds by contract or commission; and insurance, pension and health insurance brokers and agents in the first sector; and management of ports and terminals; maritime and port support navigation; highway, bridge and tunnel concessionaires; air passenger transportation; activities related to cargo transportation logistics; and pipeline transportation, in the latter.

Monthly Survey of Services
Volume of Services Indicators, according to the dissemination activities
February 2020 - Change (%)

Dissemination Activities

Month/Previous month (1)

Monthly (2)

Cumulative in the year (3)

Last 12 months (4)

DEC

JAN

FEB

DEC

JAN

FEB

JAN-DEC

JAN-JAN

JAN-FEB

Up to DEC

Up to JAN

Up to FEB

Volume of Services - Brazil

-0,8

0,4

-1,0

1,5

1,6

0,7

1,0

1,6

1,2

1,0

1,0

0,7

1. Services rendered to families

-0,2

0,5

-0,1

-1,6

0,2

4,1

2,8

0,2

2,0

2,8

2,4

2,4

1.1 Lodging and food services

0,4

0,1

0,2

-0,9

0,5

4,8

3,0

0,5

2,4

3,0

2,6

2,6

1.2 Other services rendered to families

-5,1

4,7

0,2

-6,0

-1,4

0,0

1,5

-1,4

-0,7

1,5

1,3

1,2

2. Information and communication services

0,2

-0,8

-0,5

3,1

2,0

-0,4

3,2

2,0

0,8

3,2

3,1

2,6

2.1 Information and communication technology services (ICT)

0,5

-1,3

-0,3

3,2

1,5

0,3

3,7

1,5

0,9

3,7

3,4

2,9

2.1.1 Telecommunications

-1,1

-0,1

0,0

-2,0

-4,0

-2,3

-0,9

-4,0

-3,2

-0,9

-1,3

-1,6

2.1.2 Information technology services

4,2

-2,2

-1,3

11,4

13,0

5,6

13,0

13,0

9,3

13,0

13,0

11,8

2.2 Audiovisual services

-1,3

0,4

-4,2

2,6

5,3

-5,6

0,5

5,3

-0,1

0,5

1,4

1,0

3. Professional, administrative and complementary services

-1,8

-0,4

-0,9

1,6

0,0

-3,4

0,6

0,0

-1,7

0,6

0,7

0,3

3.1 Technical-professional services

-4,3

-2,0

-2,7

6,9

0,4

-5,7

2,9

0,4

-2,8

2,9

3,1

2,3

3.2 Administrative and complementary services

-1,1

0,0

-1,6

-0,4

-0,1

-2,6

-0,2

-0,1

-1,3

-0,2

-0,2

-0,4

4. Transportation, support activities for transportation and mailing

-2,0

2,7

0,4

-1,7

1,0

1,8

-2,5

1,0

1,4

-2,5

-2,5

-2,5

4.1 Land transportation

-4,6

4,3

1,0

-6,8

-3,1

-0,7

-2,8

-3,1

-1,9

-2,8

-3,1

-3,4

4.2 Water transportation

-1,7

5,9

4,7

3,2

9,9

12,4

2,7

9,9

11,1

2,7

3,3

3,8

4.3 Air transportation

9,2

0,3

1,9

12,6

8,8

6,8

-5,3

8,8

7,8

-5,3

-5,0

-5,2

4.4 Storage services, support activities for transportation and mailing activities

0,3

0,8

-1,0

2,3

3,5

2,2

-2,5

3,5

2,8

-2,5

-2,0

-1,7

5. Other services

3,3

1,6

0,2

11,5

9,7

9,3

5,9

9,7

9,5

5,9

6,2

6,5

Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria  
(1) Base: previous month - seasonally adjusted
(2) Base: same month in the previous year
(3) Base: same period in the previous year
(4) Base: 12 previous months

The other advance came from services provided to families (4.1%), largely attributable to the increase in revenue from companies in the hotel segments; restaurants; amusement and theme parks; and fitness activities.

Conversely, professional, administrative and complementary services (-3.4%) and information and communication services (-0.4%) exerted the main negative influences this month, mostly driven by the lower revenue of enterprises of electronic payment solutions; general cleaning services; technical activities related to architecture and engineering; private surveillance and security, machinery and equipment rental, in the first segment; and advisory in information technology; programmers and activities related to pay TV; and telecommunication, in the second.

In the cumulative index in the first two months of 2020, over the same period in the previous year, the services sector increased 1.2%, with expansion in four out of the five activities and in 48.8% of the 166 types of services surveyed. Among the sectors, other services (9.5%) and Transportation , support activities for transportation and mailing (1.4%) had the main positive impacts on the global index, driven, to a large extent, by the increase in revenues from companies operating in the securities and commodities brokerage firms; collection of non-hazardous waste of domestic, of urban or industrial origin; administration of stock exchanges and organized over-the-counter markets; insurance, pension and health insurance brokers and agents; and administration of funds by contract or commission, in the first sector; and air passenger transportation; port and terminal management; maritime and port support navigation; and concessionaires of highways, bridges and tunnels, in the latter.

The other advances came from information and communication services (0.8%) and services rendered to families (2.0%), explained, to a large extent, by the higher revenues earned by companies in the segment of portals, content providers and other information services on the Internet; open TV activities; data processing, application and hosting service providers on the Internet; and book publishing and printing, in the first sector; and hotels and restaurants in the second.

On the other hand, the only negative influence in the cumulative index of the first two months of 2020, over the same period a year ago, came from professional, administrative and complementary services (-1.7%), pushed, to a great extent, by the reduction in the revenue of companies of electronic payment solutions; general cleaning services,; private surveillance and security; technical activities related to the architecture and engineering; and rental of machinery and equipment.

Services down in 16 of the 27 Federation Units

Regionally, 16 of the 27 Federation Units registered a retraction in the volume of services in February 2020, in comparison with the previous month, following the decrease (-1.0%) observed in Brazil in the seasonally adjusted series.

Among the places that recorded negative results this month, the highlights were São Paulo (-0.6%) and Minas Gerais (-1.8%).

In contrast, the major positive figures in regional terms came from Rio de Janeiro (1.2%) and Rio Grande do Sul (1.7%).

In the comparison with the same month of 2019, the advance of the volume of services in Brazil (0.7%) was followed by 15 out of the 27 Federation Units. The major positive contribution was recorded by Rio de Janeiro (3.4%), followed by São Paulo (0.7%) and the Federal District (4.8%).

On the other hand, the most important negative influences on the index came from Minas Gerais (-2.4%), Rio Grande do Sul (-2.6%) and Bahia (-3.7%).

In the cumulative index between January and February 2020 over the same period in the previous year, the advance in volume of services in Brazil (1.2%) was balanced among the places surveyed, since a little bellow half (13) out of the 27 Federation Units also expanded their real revenue of services.

The major positive impact in regional terms was in São Paulo (2.0%), followed by Rio de Janeiro (2.7%) and Federal District (4.5%).

Conversely, Rio Grande do Sul (-3.0%), Bahia (-3.9%) and Minas Gerais (-1.4%) posted the most relevant negative influences on the national index.

Index of tourism activities changes -0.3%

In February 2020, the tourism activity index showed a negative change of 0.3% compared to the previous month, the second consecutive decrease, a period in which it accumulated a loss of 0.7%, eliminating, therefore, only part of the advance seen in December 2019 (1.8%).

In regional terms, just five out of the twelve Federation Units followed such retraction in Brazil, highlighted by the retreat coming from Paraná (-4.9%). In contrast, the major positive results came from Rio de Janeiro (2.6%), followed by Pernambuco (3.5%), Bahia (2.0%) and Santa Catarina (2.8%).

In the February 2020/February 2019 comparison, the tourist activity volume index in Brazil expanded by 6.7%, the sixth consecutive positive rate, driven mainly by the increase in the revenue from hotels, car rental companies, air transportation of passengers and restaurants. Conversely, the main negative influence on tourism activities came from the segment of catering and other services of prepared food.

In regional terms, nine out of the twelve Federation Units in which the indicator is measured registered an advance in the tourism services, highlighted by Rio de Janeiro (19.1%), followed by São Paulo (4.3%), Bahia (10.9%) and Santa Catarina (13.0%). On the other hand, the most important negative impact came from the Federal District (-3.3%).

In the cumulative index in the year, the special aggregate of tourism activities rose 4.9% against the same period last year, leveraged, above all, by the sectors of air transportation of passengers and car rental, hotels and restaurants. Conversely, the main negative influence came from the segments of catering and other services of prepared food and of highway collective transportation of passengers.

In regional terms, ten of the twelve places investigated had positive rates, with a highlight to Rio de Janeiro (14.0%) and São Paulo (2.5%), followed by Santa Catarina (7.8%) and Bahia (4.7%). On the other hand, the Federal District (-2.9%) and Espírito Santo (-3.7%) posted the major negative influences in the cumulative index in the year for the tourism activities.