In October 2019, the volume of service in Brazil had growth of 0.8% against September, in the seasonally-adjusted series, recording the second positive rate in a row and a cumulative gain of 2.2% in the period. In the non-adjsuted series, in comparison with the previous month, the total volume of services advanced 2.7% in Ocotber 2019, reaching, therefore, the second consecutive and sixth non-consecutive of 2019. In the cumulative indicator from January to October 2019, the volume of services expanded by 0.8%. The annualized rate, the cumulative indicator in the last 12 months, increasing 0.8% in October 2019, indicates a gain of pace compared to August (0.6%) and September (0.7%). The full Monthly Survey of Services (PMS) publication is on the right of this page.

The 0.8% increase in the volume of services observed from September to October 2019 was seen in four of the five activities investigated, especially the sector of information and communication services (1.8%), driven by information technology (2.6%) and by audiovisuals (6.7%). Other advances came from transportation, support services to transportation and mailing activities (1.1%), services rendered to families (1.5%) and professional, administrative and complementary services (0.1%), with the first two reaching the second consecutive positive rate and accumulating gains of 2.9% and 2.5%, respectively; while the latter achieved the third consecutive positive result, accumulating a gain of 3.1%. On the other hand, other services (-0.3%) marked the only negative rate in October, eliminating part of the 0.5% increase observed in September.

Also in the seasonally adjusted series, the evolution of the quarterly moving average index for the total volume of services showed an increase of 0.7% in the quarter ended October 2019 when compared to the previous month, and kept the pace of expansion in September (0.7%).

Among the sectors, also in relation to the movement of this index on the margin, the segment of professional, administrative and complementary services (1.0%) marked the most intense positive result in this month, intensifying the growth rate observed in September (0.5%). %). Three other sectors also expanded in October: transportation, support services to transportation and mailing activities (0.7%), information and communication services (0.6%) and services renderd to families (0.3%), with the first segment posting the fourth positive rate in a row and the second maintaining the predominantly upward trend since April 2019. The last one interrupted three months of negative results. In contrast, other services registered the only decrease in this type of indicator (-0.8%), offsetting part of the 3.6% gain accumulated between May and September.

In the comparison with the same month a year ago, volume of the services sector advanced 2.7% in October 2019, having expanded in all five activities and in 53.0% of the 166 types of services investigated. It is worth highlighting that October 2019 (23) had one more business day than October 2018 (22), which may have contributed to ta greater number of service contracts.

Among the activities, the sector of information and communication services (5.1%) exerted the most relevant positive contribution in October 2019, leveraged, to a great extent, by the increase in the revenue of the enterprises of portals, content provision and search tools on the Internet; of open TV; book edition and printing ; of custom software development and license; of technical support, maintenance and other IT services.

The other advances stood with the professional, administrative and complementary services (2.6%), other services (4.2%), services rendered to families (2.5%) and transportation, support activities for transportation and mailing (0.3%) due mostly to the revenue increases coming from enterprises of the sectors of car rental, engineering services, organization, promotion and management of fairs, congresses and conventions; legal activities, advisory and consulting in professional areas in the first segment; brokerage firms; insurance, complementary welfare and health brokers; and support activities to forestry, in the second sector; and of hotels; catering services and other services of cooked food, in the third; and of roadway concessionaires; logistics; waterway and cabotage transportation; and of road transportation of cargo, in the last one.

In the cumulative index in the first ten months of 2019, over the same period in the previous year, the services sector increased 0.8%, with an expansion in four out of the five activities and in 53.0% of the 166 types of services surveyed.

Among the sectors, information and communication services (3.2%) exerted the major positive impact on the overall index, leveraged, to a great extent, by the increase in the revenue of the enterprises in the segments of web portals, content providers and other information services in the Internet, of information technology consulting, of custom software development and license and of technical support, maintenance and other services in information technology.

The other advances came from other services (5.1%) and services rendered to families (3.5%) and professional, administrative and complementary services (0.2%), mainly explained by the increasing revenue of the enterprises in the sectors of brokerage firms; administration of stock markets and organized counter markets; insurance, complementary welfare and health brokers; and support activities to forestry, in the first sector; and of hotels; catering services and other services of cooked food; fitness activities; and restaurants, in the second; and car rental, machinery an equipment rental, temporary labor force rental, and activities of collection agencies and credit bureaus and technical activities related to architecture and engineering in the last one.

Conversely, the only negative influences on the cumulative index from January to October 2019 stood with the segments of transportation, support activities to transportation and mailing (-2.7%), mostly pressed by the retreat in the revenue of road transportation of cargo, airport operation, road and air collective transportation of passengers.

Services grow in 22 of 27 Federation Units

In regional terms, 22 out of the 27 Federation Units expanded their volume of services in October 2019 compared with the previous month, following the advance of 0.8% reported for Brazil in the seasonally-adjusted series.

Among the places with positive results this month, the highlight is Rio e Janeiro (2,0%), São Paulo (0.5%) and Santa Catarina (3.7%), with the first two places registering the second positive rate in a row, with cumulative gains of: 3.6% and 2.6%, respectively; and the last one fully recovering the cumulative loss of 2.3% seen between August and September.

In contrast, the major negative figures in regional terms came from Roraima (-7.9%), Acre (-4.5%) and Tocantins (-1.9%).

In the comparison with the same month a year ago, the advance of the volume of services in Brazil (2.1%) was followed by 16 out of the 27 Federation Units.

The main positive contributions stood with São Paulo (4.0%) and Rio de Janeiro (5.8%0, with the first place being driven by the segment of information technology and the second, by audiovisual services, both in the sector of communication and information services. Other relevant advances came from Minas Gerais (1.5%), Espírito Santo (6.6%) and Ceará (4.1%).

On the other hand, the most important negative influence for the formation of the global index came from Paraná (-1.8%), which recorded a retraction in four of the five investigated activities, with a highlight to losses of the information and communication services (-3.8%) and professional and administrative services (-3.8%).

In the cumulative index between January and October 2019 over the same period in the previous year, the advance in the volume of services in Brazil (0.8%) was concentrated among the places surveyed, since only 12 out of the 27 Federation Units also expanded their real revenue of services. The major positive impact in regional terms was in São Paulo (3.3%), followed by Santa Catarina (1.9%) and Amazonas (2.9%). Conversely, Rio de Janeiro (-2.3%) recorded the most relevant negative influence on the national index.

Index of tourism activities rises 1.5%

In October 2019, the index of tourism activities expanded 1.5% in over the immediately previous month, the second positive rate in a row, a period of 6.6% cumulative gain. In regional terms, nine out of the 12 Federation Units followed this growth movement, with a highlight to the advances coming from Rio de Janeiro (5.8%), followed by Paraná (5.4%), Bahia (3.1%) and Santa Catarina (3.5%). Conversely, the major negative result came from Espírito Santo (-4.8%).

Comparing October 2019 with October 2018, the volume of tourism activities in Brazil rose 4.2%, mainly leveraged by the increase in the revenue of enterprises of car rental, restaurants and hotels. Conversely, the main negative influence on tourism activities came from the segment of air transportation of passengers. In regional terms, ten out of the 12 Federation Units in which the indicator is measured registered an advance in tourism services, with a highlight to São Paulo (4.5%) and Rio de Janeiro (9.7%), followed by and Minas Gerais (4.8%), Rio Grande do Sul (5.1%) and Goiás (5.9%). On the other hand, the most important negative impact came from the Federal District (-5.9%).

In the cumulative indicator between January and October 2019, the special aggregate of tourism activities rose 2.5% over the same period last year, mostly leveraged by the sectors of car rental, hotels, and catering services and other services of cooked food. Conversely, the main negative influence came from the segment of air transportation of passengers. Regionally, eight out of the 12 places surveyed also registered positive rates, wit a highlight to São Paulo (5.0%), followed by Rio de Janeiro (2.1%), Minas Gerais (2.3%) and Ceará (5.6%). On the other hand, the Federal District (-7.4%), Paraná (-3.3%) and Santa Catarina (-2.8%) posted the major negative influences in the cumulative index in the year for the tourism activities.