Services stable in December, accrue drop of 7.8% in 2020

February 11, 2021 09h00 AM | Last Updated: February 17, 2021 03h53 PM

In the seasonally-adjusted series, volume of services remained stable (-0.2%) in December 2020, interrupting a sequence of six positive rates.

Period Change (%)
 Volume Nominal Revenue
December 20 / November 20* -0.2 0.7
December 20 / December 19 -3.3 -2.3
Cumulative January-December -7.8 -7.1
Cumulative in the Last 12 Months -7.8 -7.1
Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria
*seasonally-adjusted series

In the seasonally-unadjusted series, the sector retreated 3.3% against December 2019, the tenth consecutive negative rate in this comparison. The cumulative index in the year fell 7.8% over the same period of 2019, thus surpassing the year of 2016 (-5.0%), which registered the most intense drop in this type of indicator.

The rate in the last 12 months declined 7.8% in December 2020, maintaining the downward trend started in January 2020 and reaching the most intense negative figure in the time series, started in December 2012.

Between November and December 2020, only two out of five activities investigated dropped: services rendered to families (-3.6%) and transportation, support activities to transportation and mailing (-0.7%). These sectors were the most affected by the Covid-19 pandemic, due to social distancing, which caused the closure of non-essential establishments and a significant reduction in the flow of people. Therefore, face-to-face services, especially those provided to families (restaurants, hotels, fitness centers, beauty parlors, etc.) and transportation of passengers (air, road and metro-rail), faced more difficulties to resume the level of February 2020.

Having accrued a gain of 3.9% in the November-December period, the most relevant expansion came from other services (3.0%), recovering from the retraction reported in October (-3.3%). The other positive figures came from information and communication services (0.3%) and professional, administrative and complementary services (0.1%), the former advancing 4.5% between September and December 2020 and the latter growing 3.5% in the last 3 months.

The quarterly moving average grew 1.3% in the quarter ended in December, maintaining the upward trend started last July.

All the five activities registered positive figures in December, highlighted by services rendered to families (3.1%), followed by professional, administrative and complementary services (1.1%), transportation, support activities for transportation and mailing (0.9%), information and communication (0.8%) and other services (0.1%).

Compared with December 2019, volume of services fell 3.3%, the tenth consecutive negative rate in this comparison. Three out of five activities dropped, as well as slightly less than half (42.2%) of the 166 types of services investigated.

Among the sectors, services rendered to families (-25.4%) exerted the most important negative influence on the total volume of services, pressed, to a great extent, by the drop in the revenue of the enterprises in the sectors of restaurants, hotels, catering and fitness.

The other retreats came from professional, administrative and complementary services (-7.4%) and transportation, support activities for transportation and mailing (-2.1%), mainly explained by the drop in the revenue of the enterprises of management of intangible assets, travel agencies, administration of rewards programs, solutions of electronic payment, organization, promotion and management of fairs, congresses and conventions, and technical activities related to architecture and engineering, in the former sector; and of air, road and metro-rail transportation (all passengers), and national mailing, in the latter.

In contrast, the positive contributions this month came from other services (8.6%) and information and communication services (1.5%), leveraged, above all, by the increase in the revenue of the enterprises belonging to the sectors of brokerage firms, recovery of plastic material, administration of stock markets and organized counter markets, consulting in financial investments, and insurance, complementary welfare and health brokers, in the former sector; and of portals, content providers and Internet search engines, and open TV activities, in the latter.

Monthly Survey of Services
Volume of Services Indicators, according to the dissemination activities
December 2020 - Change (%)
Dissemination Activities Month/Previous month (1) Monthly (2) Cumulative in the year (3) Last 12 months (4)
OCT NOV DEC OCT NOV DEC JAN-OCT JAN-NOV JAN-DEC Up to OCT Up to NOV Up to DEC
Volume of Services - Brazil 1.8 2.4 -0.2 -7.4 -5.0 -3.3 -8.7 -8.3 -7.8 -6.8 -7.4 -7.8
1. Services rendered to families 4.9 8.5 -3.6 -29.9 -26.1 -25.4 -37.7 -36.6 -35.6 -31.1 -33.4 -35.6
1.1 Housing and food services 6.5 9.6 -4.1 -30.4 -25.8 -25.8 -39.1 -37.9 -36.8 -32.2 -34.4 -36.8
1.2 Other services rendered to families -3.5 1.5 -0.5 -27.4 -27.7 -22.8 -29.7 -29.5 -29.0 -25.2 -27.5 -29.0
2. Information and communication services 1.4 0.7 0.3 0.0 1.3 1.5 -2.3 -1.9 -1.6 -1.3 -1.5 -1.6
2.1 Information and communication technology services (ICT) 1.7 0.0 0.2 3.4 3.0 2.9 0.2 0.5 0.7 0.7 0.7 0.7
2.1.1 Telecommunications -0.2 -0.6 -0.3 -2.7 -3.2 -2.8 -3.6 -3.5 -3.5 -3.2 -3.4 -3.5
2.1.2 Information technology services 5.4 0.5 1.9 14.6 14.0 10.7 7.4 8.0 8.3 8.1 8.3 8.3
2.2 Audiovisual services 0.2 5.4 1.0 -21.6 -9.5 -7.4 -19.9 -18.8 -17.7 -15.2 -16.7 -17.7
3. Professional, administrative and complementary services 1.1 2.2 0.1 -13.4 -10.4 -7.4 -12.0 -11.8 -11.4 -9.4 -10.5 -11.4
3.1 Technical-professional services 1.9 3.2 -1.4 -6.6 -2.4 -1.2 -6.3 -5.9 -5.4 -3.2 -4.6 -5.4
3.2 Administrative and complementary services 0.7 1.3 1.5 -16.0 -13.6 -10.0 -13.9 -13.9 -13.5 -11.6 -12.7 -13.5
4. Transportation, support activities for transportation and mailing 1.8 1.6 -0.7 -8.1 -4.7 -2.1 -8.5 -8.2 -7.7 -7.3 -7.6 -7.7
4.1 Land transportation 1.4 2.3 -3.0 -10.6 -7.5 -3.6 -12.7 -12.2 -11.5 -11.3 -11.8 -11.5
4.2 Water transportation 1.1 -1.5 1.2 9.0 4.8 10.5 10.9 10.4 10.4 9.8 9.7 10.4
4.3 Air transportation 0.9 6.8 3.5 -37.7 -31.9 -34.6 -37.6 -37.1 -36.9 -30.4 -33.1 -36.9
4.4 Storage services, support activities for transportation and mailing activities 1.9 1.5 0.4 0.4 5.5 6.4 2.1 2.4 2.8 1.7 2.4 2.8
5. Other services -3.3 0.8 3.0 8.6 7.3 8.6 6.4 6.5 6.7 6.8 6.9 6.7
Fonte: IBGE, Diretoria de Pesquisas, Coordenação de Indústria
(1) Base: immediately previous month - seasonally adjusted
(2) Base: same month a year ago
(3) Base: same period a year ago
(4) Base: 12 previous months

In the cumulative index in the year, over the same period of 2019, the services sector declined 7.8%, with drops in four out of five dissemination activities and expansion in only 28.9% of the 166 types of services investigated.

Among the sectors, services rendered to families (-35.6%) exerted the most relevant negative influence, especially pressed by the drop in the revenue of restaurants, hotels,  catering and other services of cooked food, and fitness activities. This sector slowly resumed its activities, due to the effects of the pandemic.

Other negative pressures came from professional, administrative and complementary services (-11.4%) and transportation, support activities to transportation and mailing (-7.7%), mainly explained by the reduction in the revenue of the enterprises of management of intangible assets, administration of rewards programs, solutions of electronic payment, general cleaning, travel agencies, organization, promotion and management of fairs, congresses and conventions, technical activities related to architecture and engineering, and rental of machinery and equipment, in the former sector; and of air transportation of passengers, road transportation of passengers, road transportation of cargo, national mailing, and metro-rail transportation of passengers, in the latter. Impacting more the overall index, compared with the others, information and communication services (-1.6%) registered losses of revenue, especially in the segments of telecommunications, programmers and activities related to pay TV, activities of cinema exhibition, satellite TV operators, and consulting in information technology.

The only positive contribution to the cumulative index between January and December 2020, compared with the same period a year ago, came from the sector of other services (6.7%), leveraged, to a great extent, by the increase in the revenue of the enterprises in the segments of brokerage firms, administration of stock markets and organized counter markets, activities of fund administration through contract or commission, recovery of plastic material, and insurance, complementary welfare and health brokers.

Services drop in eight of 27 Federation Units in December

In regional terms, eight out of 27 Federation Units retracted in volume of services in December 2020, compared with the immediately previous month, following the negative change (-0.2%) in the seasonally-adjusted series in Brazil. Among the places that dropped this month, São Paulo (-0.4%) exerted the most important retreat, followed by Minas Gerais (-1.7%).

In contrast, Rio de Janeiro (1.8%) and the Federal District (4.0%) recorded the major expansions in regional terms.

Compared with December 2019, the retreat in volume of services in Brazil (-3.3%) was followed by 16 out of 27 Federation Units. The major negative influence came from São Paulo (-3.8%), followed by Rio de Janeiro (-5.5%), the Federal District (-14.2%) and Rio Grande do Sul (-7.9%).

On the other hand, Santa Catarina (4.3%) and Minas Gerais (1.7%) reported the most relevant positive figures.

In the cumulative rate in 2020, over the same period a year ago, the decrease in volume of services in Brazil (-7.8%) was widespread along the places surveyed, since 25 out of 27 Federation Units also recorded losses in the real revenue of services.

The major negative impact in regional terms came from São Paulo (-7.4%), followed by Rio de Janeiro (-7.3%), Rio Grande do Sul (-12.7%), Paraná (-9.5%), Minas Gerais (-6.1%) and Bahia (-14.8%).

Index of tourism activities remained stable (0.0%) in December

In December 2020, the index of tourism activities remained stable (0.0%) over the previous month, after seven months of consecutive positive rates, a period in which it accrued a gain of 120.8%.

The segment of tourism still needed to advance 42.9% to resume the level of February 2020 (month that preceded the effects of the pandemic). The measures against the COVID-19 pandemic (like social distancing) intensely and immediately hit most of the tourism activities, mainly air transportation of passengers, restaurants and hotels.

In regional terms, the places that posted positive and negative rates remained balanced. Among the first ones, the highlight was the Federal District (16.6%) and Bahia (7.6%), whereas São Paulo (-4.3%) and Rio de Janeiro (-2.8%) reported the most relevant retractions.

Compared with December 2019, the index of volume of tourism activities in Brazil fell 29.9%, the tenth consecutive negative rate, mainly pressed by the drop in the revenue of the enterprises in the sectors of restaurants, air transportation, hotels, road transportation of passengers, travel agencies, catering services and car rental.

All the 12 Federation Units investigated declined in tourism services, highlighted by São Paulo (-37.4%), followed by Rio de Janeiro (-29.1%), Minas Gerais (-30.4%), Rio Grande do Sul (-37.3%), Paraná (-24.6%) and Santa Catarina (-31.8%).

In the cumulative index in the year, the special aggregate of tourism activities dropped 36.7% over the same period of 2019, pressed, above all, by the sectors of restaurants, air transportation, hotels, road transportation of passengers, catering and other services of cooked food, and travel agencies.

All the 12 Federation Units investigated registered negative rates, highlighted by São Paulo (-40.0%), followed by Rio de Janeiro (-30.9%), Minas Gerais (-35.2%), Bahia (-37.2%) and Rio Grande do Sul (-43.3%).