Volume of services grows 2.6% in July

September 11, 2020 09h00 AM | Last Updated: September 15, 2020 10h36 AM

In July 2020, the volume of services in Brazil grew 2.6% compared to June, in the seasonally adjusted series. It is the second positive rate in a row, accumulating a gain of 7.9%. This result, however, follows a sequence of four negative rates (between February and May this year), a period in which it accumulated a loss of 19.8%.

Period Change (%)
Volume Nominal Revenue
July 20 / June 20* 2.6 1.4
July 20 / July 19 -11.9 -12.8
Cumulative January-July -8.9 -7.9
Cumulative Last 12 months -4.5 -2.6
Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria
*seasonally-adjusted series

In the non-adjusted series, in the comparison with July 2019, the volume of services decreased 11.9% in July 2020, the fifth negative rate. Year-to-date, the volume of services fell 8.9% compared to the same period in 2019. The cumulative index in the last 12 months (-4.5%) has kept the downward trend since January (1.0%), with the sharpest negative result since July 2017 (-4.6%).).

The 2.6% expansion in the volume of services from June to July was seen in four of the five activities investigated, with a highlight to information and communication services (2.2%) and transportation, support services for transportation and mailing ( 2.3%). The first sector accumulated a gain of 6.3% in the last two months, but still not enough to offset the losses of 9.2% in the first five months of the year. The second activity, on the other hand, grew 14.4% between May and July, after decreasing 25.2% in the March-April period.

The other advances came from professional, administrative and complementary services (2.0%) and other services (3.0%), with the former accumulating a gain of 4.0% in the last two months, after decreasing 17.4% between February and May; and the latter recovering part of the cumulative loss between March and May (-11.8%), by advancing 10.5% in the period June-July 2020. In contrast, the only negative result of this month was with services rendered to families (-3.9%), after increasing 12.2% between May and June.

The quarterly moving average index grew 2.2% in the quarter ended in July 2020 compared to the level of the previous month, thus interrupting the downward trend that started in January 2020. Among the sectors, four out of five activities grew this month, with a highlight to transportation, support services for transportation and mailing (4.5%), followed by services rendered to families (2.5%), other services (2.1%) and information and communication (1.1%). In turn, interrupting seven months of decline, professional, administrative and complementary services (0.0%) remained stable in July.

Compared to July 2019, the volume of services fell 11.9%, its fifth negative rate in a row in this indicator. This month's result brought retraction in four of the five activities and growth in just over a quarter (28.3%) of the 166 types of services investigated.

Services rendered to families (-54.9%), transportation, support services to transportation and mailing (-11.3%) and professional, administrative and complementary services (-14.6%) had the main negative influences, due to the drop in revenues from restaurants, hotels, catering services and fitness activities, in the first sector; collective air and road transportation (both for passengers), cargo road, national mail, metro rail transportation and vehicle parking, in the second; and management of intangible assets, general cleaning, electronic payment solutions, management of loyalty programs, travel agencies and car rental, in the latter.

Also falling compared to July 2019, but with less impact on the general index, information and communication services (-2.6%) lost revenue in telecommunications, programmers and activities related to pay-TV, cinema exhibition activities, satellite pay TV and data processing, application service providers and Internet hosting services.

On the other hand, the only positive contribution in that month came from other services (4.1%), driven, above all, by the increase in revenue from companies belonging to the branches of securities and securities brokers, stock exchange management and organized over-the-counter markets. fund management activities by contract or commission.

In the cumulative index of the year, compared to the same period of the previous year, the services sector decreased 8.9%, with drops in four of the five dissemination activities and with expansion in only 25.9% of the 166 types of services investigated. Among the sectors, services rendered to families (-38.2%) had the most relevant negative influence. It is worth mentioning that the increasing decline in this sector, from a drop of 35.2% in the first half of the year to a decrease of 38.2% in the first seven months of 2020, reflects the slow pace of the return of face-to-face service provision, even with the growing libertation for partial or full operation of some of these establishments.

Monthly Survey of Services
Indicators of Volume of Services, by disseminated activities
July 2020 - Change (%)
Disseminated Activities MoM (1) Monthly (2) Cumulative in the year (3) Last 12 months (4)
MAY JUN JUL MAY JUN JUL JAN-MAY JAN-JUN JAN-JUL Until MAY Until JUN Until JUL
Volume of Services - Brazil -1,2 5,2 2,6 -19,3 -12,2 -11,9 -7,6 -8,4 -8,9 -2,6 -3,4 -4,5
1. Services Rendered to Families 3,5 8,4 -3,9 -61,6 -57,5 -54,9 -31,0 -35,2 -38,2 -12,0 -16,9 -21,9
1.1 Lodging and Food Services 4,0 9,4 -5,0 -63,8 -60,1 -57,2 -32,1 -36,6 -39,7 -12,2 -17,4 -22,6
1.2 Other Services Rendered to Families 3,1 4,3 3,7 -50,3 -42,4 -41,7 -25,1 -27,8 -29,8 -10,8 -14,2 -18,0
2. INformation and Communication Services -2,8 4,0 2,2 -8,9 -3,0 -2,6 -2,5 -2,6 -2,6 0,8 0,6 0,1
2.1 Information and Communication Tecnology Services (TIC) -2,6 3,8 1,3 -4,9 0,7 0,8 -0,6 -0,4 -0,2 1,6 1,6 1,3
2.1.1 Telecommunication -1,0 0,7 0,3 -5,1 -4,2 -3,7 -3,8 -3,9 -3,9 -2,3 -2,6 -2,8
2.1.2 Information Technology Services -3,2 3,8 5,3 -4,7 9,7 9,0 5,7 6,4 6,8 9,1 9,6 9,1
2.2 Audiovisual Services -5,2 5,9 7,6 -36,3 -30,5 -26,0 -15,9 -18,3 -19,4 -4,2 -5,9 -8,0
3. Professional, Administrative and Complementary Services -4,0 1,9 2,0 -21,3 -15,9 -14,6 -9,5 -10,6 -11,2 -3,1 -4,3 -5,6
3.1 Technical-Professional Services -6,0 0,8 10,2 -15,8 -10,0 -4,8 -6,5 -7,1 -6,8 0,4 -0,2 -0,8
3.2 Administrative and Complementary Services -1,4 2,6 0,4 -23,2 -17,9 -17,9 -10,5 -11,8 -12,7 -4,3 -5,7 -7,3
4. Transportation, Support Services for Transportation and Mailing 4,4 7,1 2,3 -20,5 -11,3 -11,3 -8,0 -8,5 -9,0 -5,3 -5,3 -6,2
4.1 Land Transportation 6,9 3,7 5,8 -24,1 -17,3 -15,5 -12,7 -13,4 -13,7 -8,0 -8,5 -9,4
4.2 Waterway Transportation -1,7 -2,4 1,6 10,8 9,1 6,7 14,7 13,8 12,7 7,8 8,8 8,3
4.3 Air Transportation 24,0 57,1 17,1 -75,9 -59,0 -51,4 -30,4 -35,2 -37,7 -15,5 -18,7 -22,9
4.4 Storage, Support Services for Transportation and Mailing 2,4 4,3 0,7 -5,1 7,5 2,8 0,8 1,9 2,0 -0,8 0,6 0,8
5. Other Services -3,8 7,2 3,0 -7,3 4,1 4,1 5,2 5,0 4,9 6,4 6,6 6,1
Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria
(1) Base: previous month - seasonally adjusted
(2) Base: same month of the previous year
(3) Base: same period of the previous year
(4) Base: previous 12 months

Other negative pressures came from transportation, support services for transportation and mailing (-9.0%) and professional, administrative and complementary services (-11.2%). Information and communication services (-2.6%) had less impact on the general index. On the other hand, the only positive contribution in the cumulative result for the year came from other services (4.9%).

Services grow in 20 of the 27 Federation Units

Regionally, most (20) of the 27 Federation Units showed expansion in the volume of services in July 2020, in comparison with June, following the advance (2.6%) observed in Brazil. Among the places with positive results, São Paulo (1.6%) and Rio de Janeiro (3.3%) registered the main advances. Other relevant positive contributions came from Rio Grande do Sul (3.5%) and the Federal District (5.2%). On the other hand, Ceará (-2.5%) and Bahia (-0.9%) had the main negative impacts.

Compared to July 2019, there was a decrease in 25 of the 27 Federation Units. The main negative influence came from São Paulo (-10.7%), followed by Rio de Janeiro (-9.2%), Minas Gerais (-11.8%), Paraná (-15.4%), Bahia ( -26.4%) and Rio Grande do Sul (-14.4%). On the other hand, the only positive contributions came from Mato Grosso (0.8%) and Rondônia (5.2%), driven by the good performance of agribusiness.

In the cumulative result for the year, the drop in the volume of services in Brazil (-8.9%) occurred on a widespread basis, with decreases in 26 of the 27 Federation Units. The main negative impact came from São Paulo (-8.2%), followed by Rio de Janeiro (-6.8%), Rio Grande do Sul (-14.4%) and Minas Gerais (-8.9%) . The only positive contribution came from Rondônia (3.9%).

Tourism activities grow 4.8% in July

In July 2020, the tourism activity index grew 4.8% compared to June, the third consecutive positive rate, a period in which it accumulated a gain of 36.1%. The tourism segment had accumulated a significant loss between March and April (-68.1%), as social isolation reached more intensely a good part of the companies that make up tourism activities, mainly, air transportation of passengers, restaurants and hotels.

Regionally, nine of the 12 Federation Units followed this expansion movement, with a highlight to São Paulo (5.4%) and Rio de Janeiro (11.5%), followed by Pernambuco (18.9%), Minas Gerais (5 , 5%) and the Federal District (15.4%). Conversely, Ceará (-23.0%) and Santa Catarina (-4.8%) had the main negative impacts.

In the July 2020/July 2019 comparison, the volume of tourism activities in Brazil fell 56.1%, the fifth negative rate in a row, mainly pressured by the drop in revenue from companies operating in the restaurant industry; hotels; air transportation; collective passenger road transportation; catering services; travel agencies; car rental; and tour operators. In regional terms, all 12 Federation Units surveyed had a decrease in services related to tourism, mainly São Paulo (-57.0%), followed by Rio de Janeiro (-46.3%), Minas Gerais (-52 , 2%), Bahia (-72.7%), Rio Grande do Sul (-63.4%) and Paraná (54.8%).

In the cumulative result for the year, the special aggregate of tourism activities fell 37.9%, pressured by the restaurant branches; air transportation; hotels; collective passenger road transportation; catering, buffet and other prepared food services; and travel agencies. Regionally, all 12 locations also registered negative rates, especially São Paulo (-39.4%), followed by Rio de Janeiro (-32.0%), Minas Gerais (-36.9%), Bahia (- 39.4%), Rio Grande do Sul (-44.1%) and Paraná (-37.3%).