Under pandemic, services sector retreats 0.9% in May

July 10, 2020 09h00 AM | Last Updated: July 13, 2020 04h24 PM

In the seasonally-adjusted series, the services sector fell 0.9% in May 2020 over April, still under the effect of the Covid-19 pandemic. This was the fourth consecutive negative rate, a period in which it accrued losses of 19.7%. In the seasonally-unadjusted series, volume of services retreated 19.5% in relation to May 2019, the third consecutive negative rate and the most intense drop since the beginning of the time series in January 2012. In the cumulative index in the year, the sector stayed at -7.6% and, in the last 12 months, it declined 2.7%.

Indicators of the Monthly Survey of Services
Brazil - May 2020
Period Change (%)
Volume Nominal Revenue
May 20 / April 20* -0.9 -0.7
May 20 / May 19 -19.5 -18.8
Cumulative January-May -7.6 -6.0
Cumulative in the last 12 months -2.7 -0.1
Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria 
*seasonally-adjusted series

The retreat of 0.9% in volume of sales between April 2020 and May 2020 was followed by three out of the five activities investigated, highlighted by the sectors of information and communication services (-2.5%), which accrues a loss of 8.9% in the first five months of the year, and of professional, administrative and complementary services (-3.6%), which registered a drop of 20.6% in the last eight months. Other services (-4.6%) was the other sector that recorded a negative figure this month, posting the third consecutive negative rate and accruing a loss of 12.4% between March and May 2020.

Conversely, the activities of transportation, support services for transportation and mailing (4.6%) and services rendered to families (14.9%) recovered only a slight part of the losses registered in the last months. While the former sector had retracted 25.0% between March and April, the latter recorded a cumulative drop of 62.7% in the previous three months.

Still in the seasonally-adjusted series, the quarterly moving average for volume of sales retracted 6.8% in the quarter ended in May 2020 over the level of the previous month, thus stepping up the pace of drop against January (-0.1%), February (-0.4%), March (-2.5%) and April (-6.5%). All the five activities retracted this month, highlighted by services rendered to families (-27.6%), followed by transportation, support services for transportation and mailing (-8.1%) and professional, administrative and complementary services (-6.2%). The sectors of other services (-4.3%) and information and communication (-2.3%) were the other activities that dropped in this indicator. 

Having declined 19.5% in May 2020 compared with the same month a year ago, volume of the services sector recorded the most intense negative rate since the beginning of the time series for this type of indicator. All the five dissemination activities retracted and less than one quarter (22.3%) of the 166 service types investigated increased. Among the activities, transportation, support services for transportation and mailing (-20.8%) and services rendered to families (-61.5%) exerted the major negative influences on the total volume of services, since they were strongly impacted by the social distancing measures implemented in the entire national territory.

The other retreats came from the sectors of professional, administrative and complementary services (-21.7%), information and communication services (-9.0%) and other services (-7.3%).

In the cumulative index in the year, the services sector declined 7.6% over the same period last year, falling in four out of the five dissemination activities and expanding in only 27.7% of the 166 types of services investigated. Among the sectors, services rendered to families (-31.0%) exerted the most relevant negative influence.

Monthly Survey of Services
Volume of Services Indicators, according to the dissemination activities
May 2020 - Change (%)
Dissemination Activities Month/Previous month (1) Monthly (2) Cumulative in the year (3) Last 12 months (4)
MAR APR MAY MAR APR MAY JAN-MAR JAN-APR JAN-MAY Up to MAR Up to APR Up to MAY
Volume of Services - Brazil -6.9 -11.9 -0.9 -2.8 -17.3 -19.5 -0.2 -4.5 -7.6 0.7 -0.6 -2.7
1. Services rendered to families -31.6 -45.1 14.9 -33.5 -65.3 -61.5 -10.2 -23.6 -31.0 -1.0 -6.6 -12.0
1.1 Lodging and food services -33.8 -45.2 4.1 -35.9 -68.1 -63.9 -10.7 -24.5 -32.1 -1.1 -6.7 -12.2
1.2 Other services rendered to families -19.8 -33.0 1.3 -19.9 -50.6 -49.1 -7.5 -18.6 -24.8 -0.4 -5.7 -10.7
2. Information and communication services -1.5 -2.8 -2.5 -0.2 -4.7 -9.0 0.5 -0.8 -2.5 2.5 2.0 0.8
2.1 Information and communication technology services (ICT) -0.2 -1.0 -1.7 0.8 -0.7 -5.1 0.9 0.5 -0.6 2.8 2.5 1.5
2.1.1 Telecommunications -2.3 0.0 -1.0 -4.0 -3.9 -5.2 -3.4 -3.5 -3.9 -1.8 -2.0 -2.3
2.1.2 Information technology services 2.0 -2.3 -2.6 9.8 5.7 -4.7 9.4 8.5 5.7 11.9 11.3 9.1
2.2 Audiovisual services -9.1 -22.7 -4.1 -7.9 -32.6 -36.5 -2.6 -10.3 -15.9 1.0 -1.3 -4.2
3. Professional, administrative and complementary services -4.3 -10.4 -3.6 -3.7 -17.5 -21.7 -2.4 -6.3 -9.6 0.2 -1.2 -3.1
3.1 Technical-professional services 1.3 -4.8 -5.9 3.2 -12.3 -15.4 -0.9 -4.0 -6.4 2.9 1.6 0.5
3.2 Administrative and complementary services -7.4 -10.6 -1.8 -6.0 -19.4 -23.8 -2.9 -7.1 -10.7 -0.7 -2.1 -4.4
4. Transportation, support activities for transportation and mailing -8.8 -17.8 4.6 0.4 -21.2 -20.8 1.0 -4.6 -8.0 -1.9 -3.2 -5.3
4.1 Land transportation -10.5 -20.5 6.6 -5.7 -28.4 -24.4 -3.3 -9.6 -12.7 -3.4 -5.4 -8.1
4.2 Water transportation -0.5 -0.1 -1.7 24.1 16.3 10.6 15.6 15.8 14.7 5.7 7.2 7.8
4.3 Air transportation -27.1 -73.1 9.2 -11.6 -77.1 -76.1 1.6 -16.6 -30.4 -5.4 -9.1 -15.5
4.4 Storage services, support activities for transportation and mailing activities -1.0 -6.0 1.9 8.3 -4.4 -5.4 4.6 2.3 0.7 -0.2 -0.1 -0.8
5. Other services -1.9 -6.4 -4.6 14.0 0.8 -7.3 11.0 8.4 5.2 7.8 7.8 6.4
Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria
(1) Base: immediately 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

REGIONAL RESULTS 

Regionally, 16 of the 27 Federation Units registered a retraction in volume of services in May 2020, in the comparison with the immediately previous month, following the decrease (-0.9%) observed in Brazil in the seasonally-adjusted series. São Paulo (-1.5%) and the Federal District (-13.9%) were the negative highlights. Other relevant negative pressures came from Minas Gerais (-0.9%) and Rio de Janeiro (-0.4%). On the other hand, the major positive figures came from Rio Grande do Sul (5.2%), Santa Catarina (6.4%) and Bahia (4.7%).

In the comparison with May 2019, the retreat of volume of services in Brazil (-19.5%) was followed by 25 out of the 27 Federation Units. São Paulo (-20.2%) was the major negative influence, followed by Rio de Janeiro (-17.3%), Minas Gerais (-17.7%) and Rio Grande do Sul (-24.0%). In contrast, the only positive contributions came from Mato Grosso (6.3%) and Rondônia (9.3%). 

 In the cumulative index in the year, 26 out of the 27 Federation Units retracted in the real revenue of services. The major negative impact in regional terms came from São Paulo (-7.1%), followed by Rio de Janeiro (-5.5%), Rio Grande do Sul (-13.7%) and Minas Gerais (-7.8%). On the other hand, the only positive contribution to the national index came from Rondônia (4.1%).

SPECIAL AGGREGATE OF TOURISM ACTIVITIES

The index of tourism activities expanded 6.6% between April 2020 and May 2020, recovering part of the cumulative drop between March and April (-68.1%). It reflected the impact of the preventive measures against the Covid-19 pandemic, like social distancing, in part of the enterprises related to tourism, like air transportation of passengers, restaurants and hotels. In regional terms, 10 out of the 12 Federation Units followed such expansion movement observed in Brazil, highlighted by Rio de Janeiro (15.5%), followed by Minas Gerais (13.5%), Paraná (19.3%) and Santa Catarina (25.4%). 

In the comparison between May 2020 and May 2019, the index of volume of tourism activities in Brazil retreated 65.6%, the third negative rate in a row, mainly pressed by the drop in the revenue of air transportation, restaurants, hotels, land transportation and catering services. In regional terms, all the 12 Federation Units in which the indicator is measured registered a retreat in tourism services, with a highlight to São Paulo (-66.1%), followed by Rio de Janeiro (-60.8%), Minas Gerais (-61.1%), Bahia (-73.0%), Paraná (-62.3%) and Rio Grande do Sul (-71.7%).

In the cumulative index in the year, the special aggregate of tourism activities retracted 29.9% over the same period last year, pressed, above all, by the sectors of restaurants, air transportation, hotels, land transportation, and catering services and other services of cooked food. In regional terms, all the 12 places investigated also registered negative rates, highlighted by São Paulo (-31.5%), followed by Rio de Janeiro (-25.4%), Minas Gerais (-30.2%), Rio Grande do Sul (-35.8%), Paraná (-30.2%) and Bahia (-27.9%).