In November 2020, volume of services in Brazil increased by 2.6% from October, seasonally-adjusted series considered. That was the sixth positive rate in a row, leading to a 19.2% cumulative increase. Results without seasonal adjustment, against those in November 2019, show a 4.8% decrease in November 2020, ninth consecutive negative. Cumulative volume of services in the year fell 8.3% from the same month in 2019. The cumulative figure in 12 months (7.4%) has been on a downward trend since January (1.0%) and accounted for the main negative result since the start of the time series for this index, in December 2012.

Having increased by 2.6% in November 2020, the services sector recorded its sixth positive rate in a row, with a cumulative 19.2%. Such advance is, nevertheless, still not enough to make up for the 19.6% loss registered between February and May. So, services in Brazil is still 14.1% below the record history of November 2014 and 3.2% below the February 2020 figure.

Increase (2.6% in services volume)from October to November 2020 was also observed in the five activities surveyed. The highlights were transportation, auxiliary services to transportaion and mailing activities (2.4%), services rendered to households (8.2%) and professional, administrative and complementary services (2.5%). The first two aforementioned sectors were most severely affected by the COVID 19 pandemic, which had a stronger impact on face-to-face services.

Transportation, which accounted for the seventh increase in a row, had a cumulative increase of 26.7% between May and November, but still has 5.4% to cover before it recovers February levels. Services rendered to households recorded its fourth increase in a row, with a cumulative gain of 98.8% in the last seven months, but it still has to increase by 34,2% to keep up with the February figure. Professional, admnistrative and complementary services, in turn, reached 9.5% in the June-November period, after recording decrease from February to May.

Other increases came from information and communication services (0.5%) and other services (0.5%). The first activity had a cumulative advance of 4.6% from September to November; the latter rose once more, after a decrease of 3.9% in October. These are the only sectors that have surpassed the February level, due to the good performance of information technology segments; auxiliary financial services and technology information services, respectively.

The quarterly moving average of services increased 2.2% in the quarter ended November from October, having remained on an upward trend since July. Among the sectors, five activities recorded increases, with a highlight to services rendered to households (7.7%), transportation, auxiliary services to transportation and mailing activities (2.0%), information and communication (1.5%), professional, administrative and complementary services (1.1%) and other services (0.7%).

Against November 2019, volume of services fell 4.8%, having accounted for the ninth negative rate in a row foer that type of indicator. In November 2020, three of the five activities and 35.5% of the 166 types of services surveyed recorded increases.

Among the activities, professional, administrative and complementary services (-10.7%) and services rendered to households (-26.2%) accounted for the main negative contributions. The former were influnced by the reduction of revenue in companies dealing with intangible assets; organization, promotion and management of fair, congresses and conventions; general cleaning; technical activities in architecture and engineering; travel agencies; and car rental. Regarding services rendered to households, the main contributions came from restaurants; hotels; catering services; and physical conditioning activities.

Another decrease was that of transportation, auxiliary services to transportation and mailing activities (-3.7%), mainly due to the reduced revenue of air tranportation, collective railway and subway transportation (of passengers); and national mailing services.

On the other hand, positive contributions came from other services (7.3%) and information and communication services (1.0%), due to the increase of revenue of enterprises in the segments of stock market administration and over the counter markets; recovery of plastic material; security dealers; post-harvesting activities; and treatment and disposal of non-dangerous residue, in the former sector; and web portals, content providers and Internet search tools; and broadcast TV activities, in the latter.

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Regarding the cumulative index in the year, against the same period in 2019, the services sector recordd a decrease of 8.3%, with decline in four of the five activities and only 25.9% of the 166 types of services surveyed. Among the sectors, services renderd to households (-36.6%) accounted for the main negative contribution, due to the reduced revenue of restaurants; hotels; ctaerering and ready-to-eat food services. The sector is still at a low pace of recovery, due to the face-to-face nature of its services.

Other important negative contributions came from professional, administrative and complementary services (-11.8%) and transportation, auxiliary services to transportation and mailing activities
(-8.1%). Results of the former were mainly due to the reduction of revenue of enterprises dealing with intangible assets; administration of loyalty programs; solutions in electronic payment; general cleaning; organization, promotion and management of fairs, congresses and conventions; technical activities in architecture and engineering; and rental of machinery and equipment.

The second activity recorded a decrease in air transportation of passengers; collective road transportation of passengers; cargo transportation; national mailing services; and subway transportation of passengers.

With the lowest impact on the general index, information and communication services (-2.0%) recorded decreases in the following segments: telecommunications; programmers and activities related to subscription TV; cinema broadcast activities; satellite TV operators; and information technology consulting.

On the other hand, the only positive contribution to the cumulative result from January to November 2020, against the same period a year ago, came from other services (6.5%), due, to a great extent, to the increase of revenue of enterprises dealing with securities and goods; administration of stock markets and over the counter markets; activities in fund administration by means of contract or commission; and disposal of non-dangerous residue of domestic, urban or industrial origin.

Services increased in 19 of the 27 Federation Units

By area, most of (19) the 27 Federation Units recorded an increase in volume of sales, against the previous month, following the advance (2.6%) observed in Brazil – seasonal adjusted series. São Paulo (3.2%) accounted for the most significant increase. Other positive relevant contributions came from Minas Gerais, (2.8%), Rio de Janeiro (1.3%), Rio Grande do Sul (3.2%), Pernambuco (5.2%) and Paraná (2.1%). Federal District recorded the main decrease (-9.9%).

Against November 2019, decline in the volume of services in Brazil (-4.8%) also took place in 22 of the 27 Federation Units. The main negative contributions came from São Paulo (-3.8%) and Rio de Janeiro (-7.9%), followed by Federal District (-18.6%), Paraná (-8.6%) and Rio Grande do Sul (-6.9%). On the other hand, Santa Catarina (4.6%) recorded the main positive result.

From January to November 2020, against the same period in 2019, decrease in volume of services in Brazil (-8.3%) took place in all the 27 Federation Units. The main negative impact came from São Paulo (-7.9%), followed by Rio de Janeiro (-7.5%), Rio Grande do Sul (-13.1%), Paraná (-10.0%), Minas Gerais (-6.9%) and Bahia (-16.0%).

Tourism activity index 7.6% up in November

In November 2020, the tourism activity index increased by 7.6% against the previous month, the seventh positive rate in a row, with a cumulative increase of 120.8%. However, the tourism sector still has to advance by 42.8% to recover the same position as in February 2020, since social distancing affected tourism activities, mainly air transportation of passengers, restaurants and hotels.

By area, nine of the 12 Federation Units followed that trend to increase observed in Brazil, mainly in São Paulo (11.0%), Rio de Janeiro (5.4%), Bahia (11.8%), Pernambuco (11.8%) and Goiás (9.9%). On the other hand, Santa Catarina (-7.1%) and Minas Gerais (-3.2%) recorded the most significant decreases.

Against November 2019, the tourism activity industry in Brazil fell 29.6%, ninth negative rate in a row, mainly due to the reeuction of revenue in enterprises dealing with: air transportation, restaurants, hotels, collective road transportation of passengers; catering and ready-to-eat food services; travel agencies;and car rental.

Tourism-related services recorded increases in all the 12 Federation Units where the indicator was invesigated, with a highlight to São Paulo (-35.4%), Rio de Janeiro (-24.0%), Minas Gerais (-30.5%), Rio Grande do Sul (-37.7%) and Federal Disrict (-40.8%).

In terms of the cumulative index from January to November 2020, the special aggregate of tourism activities fell by 37.4% against the same period a year ago, mainly due to the following activities: restaurants; air transportation; hotels; collective road transportation of passengers; catering and other ready-to-eat food services; and travel agencies. Twelve areas recorded decreases, with a highlight to São Paulo (-40.3%), Rio de Janeiro (-31.1%), Minas Gerais (-35.8%), Bahia (-39.6%) and Rio Grande do Sul (-43.9%).