In January 2024, the volume of services in Brazil grew 0.7% compared to December 2023, in the seasonally adjusted series. It was the third consecutive positive result for the indicator, a period in which it accumulated a gain of 1.9%. The services sector is 13.5% above the level of February 2020 (pre-pandemic) and 0.7% below December 2022 (the peak of the time series).

In the non-seasonally adjusted series, compared to January 2023, the volume of services grew 4.5%, the most intense increase since May 2023 (5.1%). The twelve-month cumulative index increased 2.4%, repeating the same rate as in December 2023, interrupting the downward trend seen since October 2022 (9.0%).

The increase in the volume of services (0.7%), from December 2023 to January 2024, was followed by four of the five activities surveyed, with a highlight to the advance coming from the information and communication sector (1.5%), the fourth positive result in a row, a period in which it accumulated a gain of 3.8%. The other relevant advances came from professional, administrative and complementary services (1.1%) and transportation (0.7%), with the former recovering almost all of December's loss (-1.5%); and the second accumulating a gain of 1.8% in the last two months. In turn, other services (0.2%) showed a slight positive change after falling 1.2% in December.

In contrast, services rendered to families (-2.7%) marked the only decline of the month, thus eliminating part of the expansion accumulated in the last 2 months of last year (7.4%)

Still in the seasonally adjusted series, the evolution of the quarterly moving average index for the total volume of services showed an expansion of 0.6% in the quarter ending in January 2024 compared to the level of the previous month. Among the sectors, still in relation to the movement of this index on the margin, there was a spread of positive rates, as all five activities also advanced compared to the level of the quarter ended in December: services rendered to families (1.4%); other services (1.0%); information and communication services (1.0%); professional, administrative and complementary services (0.4%); and transportation services (0.3%).

Compared to January 2023, the volume of the services sector expanded by 4.5% in January 2024, after falling by 1.9% in the previous month. This month's progress was followed by all five dissemination activities and also saw growth in 55.4% of the 166 types of services investigated. Among the sectors, information and communication (6.8%) had the main positive impact, driven mainly by the increase in telecommunications revenue; portals, content providers and other information services on the Internet; open TV; software development and licensing; and editing integrated with book printing.

The other advances came from transportation, support services for transportation and mailing (3.1%), professional, administrative and complementary services (5.0%); services rendered to families (3.9%); and other services (3.1%), explained, to a great extent, by the greater revenue coming from road cargo transportation; port and terminal management; maritime and port support navigation; and loading and unloading of goods, in the first segment; of legal activities; rental of machinery and equipment for construction and demolition; business intermediation activity in general; rental of other means of transportation (except cars); cleaning activities; and business management consultancy, in the second; of restaurants; and catering services, in the third; and auxiliary activities of financial services; insurance, supplementary pension and health plans; real estate activities; securities and securities brokers; and credit card management, in the last one.

Growth in 16 of the 27 Federation Units in January

Of the 27 Federation Units, 16 recorded an expansion in the volume of services in January 2024, compared to December 2023, following the increase observed in Brazil's result (0.7%) – seasonally adjusted series. Among the places that recorded positive rates this month, the most important impact came from Rio de Janeiro (5.3%), followed by São Paulo (0.8%), Amazonas (10.9%), Federal District (2. 8%) and Paraná (1.5%). On the other hand, Mato Grosso (-3.3%) and Bahia (-1.6%), followed by Mato Grosso do Sul (-2.4%), Pará (-2.1%) and Goiás (-1. 3%) exerted the main negative influences of the month.

In comparison with January 2023, the expansion in the volume of services in Brazil (4.5%) was followed by 26 of the 27 Federation Units. The most important positive contribution came from São Paulo (3.3%), followed by Rio de Janeiro (5.0%), Paraná (10.7%), Minas Gerais (5.4%) and Santa Catarina (10. two%).On the other hand, Rio Grande do Norte (-3.6%) registered the only decrease of the month.

Tourism activities fell 0.8% in January

In January 2024, the tourism activity index showed a decline of 0.8% compared to December 2023, after having increased 2.6% in the previous month. As a result, the tourism segment is 3.5% above the level of February 2020 and 4.3% below the highest point in the series, reached in February 2014. Regionally, only four of the 12 locations surveyed followed this movement decline in national tourism activity (-0.8%). The most relevant negative influences came from Rio de Janeiro (-5.7%) and Rio Grande do Sul (-6.2%). In the opposite direction, Ceará (11.9%), Bahia (2.7%), São Paulo (0.3%) and Minas Gerais (1.1%) recorded the main advances in regional terms.

In the January 2024 / January 2023 comparison, the volume index of tourism activities in Brazil showed expansion of 0.5%, the thirty-fourth positive rate in a row, driven mainly by the increase in revenue from companies operating in the sectors of restaurant; catering services; car rental; theatrical and musical shows; and travel agencies. In regional terms, six of the twelve Federation Units where the indicator is investigated showed progress in services aimed at tourism, with a highlight to Minas Gerais (10.1%) and Rio de Janeiro (4.3%), followed by Pernambuco (5 .2%), Paraná (2.8%) and Santa Catarina (3.0%). On the other hand, Federal District (-8.7%), Rio Grande do Sul (-5.7%), Goiás (-8.2%), Ceará (-5.4%) and Espírito Santo (-8.2%) %) exerted the main negative impacts of the month.

Passenger tranportation and cargo transportation grow in January

In January 2024, the volume of passenger transportation in Brazil registered an expansion of 2.9% compared to the previous month, in the non-adjusted series, after recording four negative rates in a row, a period in which it recorded a cumulative loss of 8.0%. Therefore, in this reference month, the segment is 5.6% below the level of February 2020 (pre-pandemic) and 27.2% below February 2014 (the highest point in the time series).

In turn, the volume of cargo transportatioin expanded by 0.6% in January 2024, after falling by 0.9% in December. Therefore, the segment is 4.4% below the highest point in its series (July 2023). In relation to the pre-pandemic level, cargo transportation is 37.0% above February 2020.

Compared to January 2023, non-adjusted, passenger transportation showed a decline of 5.6% in January 2024, the third consecutive setback; while cargo transportation, in the same type of comparison, showed growth of 6.8%, thus marking the forty-first positive result in a row.