Volume of services grew 2.9% in August

October 14, 2020 09h00 AM | Last Updated: October 15, 2020 03h37 PM

In the seasonally-adjusted series, volume of services in Brazil advanced 2.9% in August 2020 over July. It was the third positive rate in a row, accruing a rise of 11.2% in the period. This result followed a sequence of four negative rates between February and May, which accrued a loss of 19.8%.

In the seasonally-unadjusted series, volume of services retreated 10.0% against August 2019, the sixth consecutive negative rate in this comparison.

The cumulative index in the year fell 9.0% against the same period in 2019.

The rate over the last 12 months declined 5.3% in August 2020, maintaining the downward trend started in January 2020 and reaching the most intense negative figure in the time series of this indicator, started in December 2012.

Period Change (%)
Volume Nominal Revenue
August 20 / July 20* 2.9 3.5
August 20 / August 19 -10.0 -10.4
Cumulative January-August -9.0 -8.2
Cumulative in the Last 12 Months -5.3 -3.7
*seasonally-adjusted series  

The rise of 2.9% in volume of services between July and August 2020 was followed by four out of the five activities investigated, highlighted by services rendered to families (33.3%) and transportation, support services to transportation and mailing (3.9%). The former sector registered the most intense positive rate in the time series (started in January 2011), yet it was still far from the level of February (-41.9%), the month that preceded the beginning of the Covid-19 pandemic. On the other hand, the latter activity accrued a gain of 18.8% over the last four months, after losing 25.2% between March and April 2020.

The other advances came from professional, administrative and complementary services (1.0%) and other services (0.8%), the former accruing a gain of 5.4% in the period between June and August, after retreating 18.0% between March and May, and the latter advancing 11.9% in the last three months, after declining 11.6% between March and May.

Conversely, the only negative result this month was recorded by information and communication services (-1.4%), after advancing 6.3% between June and July.

The quarterly moving average increased 3.6% in the quarter ended in August 2020 against the level of the previous month, surpassing that reported in July (2.2%).

All the five activities posted positive figures in August, highlighted by the advance in services rendered to families (11.4%), followed by transportation, support services to transportation and mailing (4.3%), other services (3.7%), professional, administrative and complementary services (1.8%) and information and communication (1.6%).

Volume of services fell 10.0% over August 2019, the sixth consecutive negative rate in this comparison. Four out of the five activities dropped and slightly more than one third (31.9%) of the 166 types of services investigated increased.

Among the sectors, services rendered to families (-43.8%), professional, administrative and complementary services (-14.0%) and transportation, support services for transportation and mailing (-8.5%) exerted the major negative influences on the total volume of services.

Also dropping over August 2019, though with a smaller impact on the overall index, information and communication services (-4.0%) showed losses in the enterprises that operate in the sectors of consulting in information technology, telecommunications, stations and activities related to pay TVs, and activities of cinema.

In contrast, the only positive contribution this month came from other services (7.2%), leveraged, above all, by the increase in the revenue of the enterprises belonging to the sectors of administration of stock markets and organized counter markets, brokerage firms, and activities of administration of funds by contract or commission.

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

Monthly Survey of Services - Volume of Services, according to the activities - August 2020 - Change (%)
Dissemination Activities Month/Previous month (1) Monthly (2) Cumulative in the year (3) Last 12 months (4)
JUN JUL AUG JUN JUL AUG JAN-JUN JAN-JUL JAN-AUG Up to JUN Up to JUL Up to AUG
Volume of Services - Brazil 5.3 2.6 2.9 -12.2 -12.0 -10.0 -8.4 -8.9 -9.0 -3.4 -4.5 -5.3
1. Services rendered to families 14.4 -10.8 33.3 -57.5 -55.0 -43.8 -35.2 -38.2 -38.9 -16.9 -21.9 -25.5
1.1 Housing and food services 17.3 -13.3 37.9 -60.1 -57.2 -45.3 -36.6 -39.7 -40.4 -17.4 -22.6 -26.3
1.2 Other services rendered to families 3.6 3.7 9.1 -42.4 -42.6 -35.3 -27.8 -29.9 -30.6 -14.2 -18.1 -20.9
2. Information and communication services 3.9 2.4 -1.4 -3.0 -2.5 -4.0 -2.6 -2.6 -2.7 0.6 0.1 -0.6
2.1 Information and communication technology services (ICT) 3.8 1.5 -1.6 0.7 0.9 -1.1 -0.4 -0.2 -0.3 1.6 1.3 0.8
2.1.1 Telecommunications 0.7 0.3 0.2 -4.2 -3.7 -3.0 -3.9 -3.9 -3.8 -2.6 -2.8 -2.9
2.1.2 Information technology services 3.8 6.2 -4.1 9.7 9.5 2.3 6.4 6.8 6.2 9.6 9.1 7.8
2.2 Audiovisual services 6.6 6.0 3.3 -30.5 -26.1 -24.3 -18.3 -19.4 -20.1 -5.9 -8.0 -10.3
3. Professional, administrative and complementary services 1.8 2.5 1.0 -15.9 -14.7 -14.0 -10.6 -11.2 -11.6 -4.3 -5.6 -6.6
3.1 Technical-professional services 0.7 9.3 0.9 -10.0 -5.3 -1.5 -7.1 -6.8 -6.2 -0.2 -0.8 -0.8
3.2 Administrative and complementary services 2.4 0.6 0.8 -17.9 -17.9 -18.3 -11.8 -12.7 -13.4 -5.7 -7.3 -8.6
4. Transportation, supoort services for transportation and mailing 7.1 2.1 3.9 -11.3 -11.6 -8.5 -8.5 -9.0 -8.9 -5.3 -6.2 -6.2
4.1 Land transportation 3.6 6.1 4.3 -17.3 -15.7 -12.6 -13.4 -13.8 -13.6 -8.5 -9.4 -9.9
4.2 Water transportation -2.6 1.2 -1.9 9.1 6.3 2.5 13.8 12.6 11.2 8.8 8.3 8.1
4.3 Air transportation 57.8 17.1 14.6 -59.0 -51.4 -39.6 -35.2 -37.7 -37.9 -18.7 -22.9 -24.3
4.4 Storage, support services for transportation and mailing 5.0 0.7 2.0 7.5 2.5 4.2 1.9 2.0 2.3 0.6 0.7 1.6
5. Other services 7.3 3.5 0.8 4.1 4.5 7.2 5.0 4.9 5.2 6.6 6.1 6.3
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

In the cumulative index in the year against the same period in 2019, the services sector retreated 9.0%, dropping in four out of the five activities and expanding in only 25.3% of the 166 types of services investigated.

Among the sectors, services rendered to families (-38.9%) exerted the most relevant negative influence, especially pressed by the drop in the revenue of restaurants, hotels, and catering services and other services of cooked food. The escalation of the drop in this sector, changing from -38.2% in the cumulative index until July to -38.9% in the cumulative index until August, still reflected the slow pace of the upturn of services provision due to the pandemic.

Other negative pressures came from transportation, support services for transportation and mailing (-8.9%) and professional, administrative and complementary services (-11.6%), mainly explained by the reduction in the revenue of the enterprises of air transportation of passengers; land transportation of passengers; land transportation of cargo; national mailing; and metro-railway transportation of passengers, in the former sector; and of administration of reward programs; electronic payment solutions; management of intangible assets; general cleaning; travel agencies; private surveillance and security; and organization, promotion and management of fairs, congresses and conventions, in the latter.

With a smaller impact on the overall index, information and communication services (-2.7%) lost revenue, especially in the segments of telecommunications; stations and activities related to pay TVs; activities of cinema exhibition; consulting in information technology; and satellite TV providers.

In contrast, the only positive contribution to the cumulative index from January to August 2020 against the same period last year came from the sector of other services (5.2%), leveraged, to a great extent, by the increase in the revenue of the enterprises that operate in the segments of brokerage firms; administration of stock markets and organized counter markets; collection of domestic, urban or industrial  non-dangerous residues; and activities of administration of funds by contract or commission.

Services grew in 21 of 27 Federation Units

In regional terms, 21 out of the 27 Federation Units expanded in volume of services in August over July, following the advance reported at national level.

Among the rising places this month, São Paulo (2.5%) exerted the most important positive impact. Other relevant positive contributions came from Minas Gerais (5.8%), Rio de Janeiro (1.9%) and Santa Catarina (3.4%). On the other hand, Mato Grosso (-2.7%) and Tocantins (-5.5%) recorded the major retractions.

The retreat in volume of services in Brazil (-10.0%) over August 2019 was followed by 26 out of the 27 Federation Units. The major negative influence was São Paulo (-9.7%), followed by Rio de Janeiro (-7.5%), Paraná (-14.1%), Bahia (-23.4%) and Rio Grande do Sul (-15.1%). In contrast, Rondônia (0.0%) remained stable against August 2019.

In the cumulative rate in 2020, over the same period a year ago, the decrease in volume of services in Brazil (-9.0%) was widespread along the places surveyed, since 26 out of the 27 Federation Units also recorded a retraction in the real revenue of services.

In regional terms, the major negative impact came from São Paulo (-8.4%), followed by Rio de Janeiro (-6.9%), Rio Grande do Sul (-14.5%) and Minas Gerais (-8.7%). Conversely, the only positive contribution to the national index came from Rondônia (3.5%).

Index of tourism activities rises 19.3% in August

The index of tourism activities grew 19.3% in August 2020 over July, the fourth positive rate in a row, a period in which it accrued a gain of 63.4%. The segment of tourism had accrued a significant loss between March and April (-68.0%).

The 12 Federation Units where this indicator is investigated rose, highlighted by São Paulo (15.8%) and followed by Rio de Janeiro (15.0%), Ceará (85.4%), Minas Gerais (22.9%), Bahia (48.4%), Paraná (28.8%) and Goiás (47.1%).

Compared with August 2019, the volume of tourism activities in Brazil fell 44.5%, the sixth negative rate in a row, mainly pressed by the drop in the revenue of the enterprises that operate in the sectors of restaurants, hotels, air transportation, land transportation of passengers, catering services, travel agencies and car rental.

In this case, the sector of tourism services retreated in the 12 Federation Units where the indicator is investigated, highlighted by São Paulo (-47.0%), Rio de Janeiro (-33.5%), Minas Gerais (-41.5%), Bahia (-59.6%), Rio Grande do Sul (-55.1%) and Pernambuco (-54.5%).

In the cumulative index in the year, the special aggregate of tourism activities dropped 38.8% over the same period in 2019, pressed, above all, by the sectors of restaurants, air transportation, hotels, land transportation of passengers, catering and other services of cooked food, and travel agencies.

The 12 places investigated dropped, highlighted by São Paulo (-40.4%), Rio de Janeiro (-32.1%), Minas Gerais (-37.6%), as well as Bahia (-41.8%), Rio Grande do Sul (-45.5%) and Paraná (-37.5%).