In the seasonally-adjusted series, volume of services in Brazil advanced 1.8% in September 2020 over August. It was the fourth consecutive positive rate, accruing a rise of 13.4% in the period. This result followed a sequence of four negative rates between February and May, with a cumulative loss of 19.8%.

In the seasonally-unadjusted series, volume of services retreated 7.2% over September 2019, the seventh consecutive negative rate in this comparison. The cumulative index in the year fell 8.8% over the same period of 2019.

The rate in the last 12 months declined 6.0% in September 2020, maintaining the downward trend started in January 2020 and reaching the most intense negative result in the time series, started in December 2012.

The rise of 1.8% in volume of services between August and September 2020 was followed by four out of five activities investigated, highlighted by information and communication services which, by advancing 2.0% this month, accrued a gain of 7.0% in the June-September period, after having retreated 8.9% between January and May 2020.

The other advances came from services rendered to families (9.0%), other services (4.8%) and transportation, support activities for transportation and mailing (1.1%). The first sector registered the second consecutive positive rate and accrued a gain of 71.0% between May and September, though it should still grow 55.9% to return to the level of February, the month that preceded the COVID-19 pandemic.

Other services advanced 18.6% in the last four months, especially due to the gains of revenue coming from the segments of support financial services. As a result, the sector surpassed the level of February, before the pandemic, and hit, in September, its highest level since October 2014.

Transportation recorded the fifth consecutive positive figure and accrued a gain of 20.3% between May and September, though it should still advance 11.1% to reach the level of February.

The only negative result this month was posted by professional, administrative and complementary services (-0.6%), which offset a small part of the gain of 5.8% reported in the June-August period.

The quarterly moving average rose 2.5% in the quarter ended in September, maintaining the upward trend started last July.

All the five activities registered positive figures in September, highlighted by services rendered to families (9.9%), followed by other services (3.1%), transportation, support services for transportation and mailing (2.4%), professional, administrative and complementary services (1.1%) and information and communication (1.0%).

Volume of services fell 7.2% over September 2019, the seventh consecutive negative rate in this comparison. Four out of five activities dropped and slightly more than one third (36.7%) of the 166 types of services investigated increased.

Among the sectors, professional, administrative and complementary services (-13.6%), services rendered to families (-36.4%) and transportation, support services for transportation and mailing (-6.3%) exerted the major negative influences on the total volume of services.

Road transportation of cargo grew once again in September over the same month last year, which did not happen since last March. The recovery of this segment was associated to the recent improvement of the industrial and commercial sectors, which have been showing a more robust economic recovery than the services sector.

Also dropping over September 2019, though with a minor impact on the overall index, information and communication services (-1.0%) showed a loss of revenue in the sectors of telecommunications; programmers and activities related to pay TV; software development and licensing; cinema exhibition; and satellite pay TV stations.

The only positive contribution this month came from other services (13.2%), leveraged, above all, by the the increase in the revenue of enterprises from the sectors of fund administration through contract or commission; administration of stock exchange and counter market; brokerage firms; post-harvesting activities; and recovery of plastic material.

Compared with the same period of 2019, the cumulative index in the year of the services sector retreated 8.8%, with drops in four of five dissemination activities and expansion in only 25.3% of the 166 types of services investigated.

Among the sectors, services rendered to families (-38.6%) exerted the most relevant negative influence, especially pressed by the drop in the revenue of restaurants; hotels; and catering and other services of prepared food. Due to the face-to-face nature of its services, legal hindrance to operate at full capacity to avoid agglomerations and fear of infection by the population, this sector was still slowly resuming its activities.

Other negative pressures came from transportation, support activities for transportation and mailing (-8.6%) and professional, administrative and complementary services (-11.8%), mainly explained by the reduction in the revenue of companies of air transportation of passengers; road transportation of passengers; road transportation of cargo; national mailing; and metro-railway transportation of passengers, in the former sector; and of management of intangible assets; administration of rewards programs; electronic payment solutions; general cleaning; travel agencies; organization, promotion and management of fairs, conferences and conventions; rental of machinery and equipment; and private surveillance and security, in the latter.

With a minor impact on the overall index, compared with other activities, information and communication services (-2.5%) showed losses of revenue especially in the segments of telecommunications; programmers and activities related to pay TV; activities of cinema exhibition; consulting in information technology; and satellite TV operators.

The only positive contribution to the cumulative index between January and September 2020, compared with the same period of 2019, was the sector of other services (6.1%), leveraged, at a great extent, by the increase of the revenue in the segments of brokerage firms; administration of stock markets and organized counter markets; fund administration by contract or commission; and collection of non-hazardous waste of domestic, urban or industrial origin.

Services grow in 25 of 27 Federation Units

In regional terms, 25 out of 27 Federation Units expanded in volume of services in September over August, following the advance (1.8%) recorded at national level.

Among the places that posted positive results this month, São Paulo (1.6%) exerted the most important positive impact. Other relevant positive contributions came from Rio Grande do Sul (4.0%), Santa Catarina (4.9%) and Paraná (2.6%).

In contrast, Rio de Janeiro (-0.5%) registered the only retraction in regional terms, pressed by the drop in the revenue of companies that worked in services linked to the petroleum chain, such as: logistics, seismic investigation and pipeline transportation. On its turn, Tocantins (0.0%) remained stable compared with August.

Compared with September 2019, the retreat in volume of services in Brazil (-7.2%) was followed by 20 out of 27 Federation Units. The major negative influence was São Paulo (-7.4%), followed by Rio de Janeiro (-10.4%), Bahia (-16.7%), Rio Grande do Sul (-10.5%) and Paraná (-8.1%). On the other hand, Santa Catarina (3.7%), Amazonas (8.4%) and Mato Grosso (3.3%) recorded the most relevant positive figures.

In the cumulative index of 2020, over the same period a year ago, the decrease in volume of services in Brazil (-8.8%) was widespread along the places surveyed, since 26 out of 27 Federation Units also recorded loss in the real revenue of services.

The major negative impact in regional terms came from São Paulo (-8.3%), followed by Rio de Janeiro (-7.3%), Rio Grande do Sul (-14.0%) and Minas Gerais (-7.9%). Conversely, the only positive contribution to the national index came from Rondônia (3.4%).

Index of tourism activities rises 11.5% in September

The index of tourism activities grew 11.5% in September 2020 over August, the fifth consecutive positive rate, a period in which it accrued a gain of 88.8%. The segment of tourism still needed to advance 66.1% to return to the level of February 2020 (month that preceded the effects of the pandemic). The measures against COVID-19 – like the incentive to social isolation – hit a good part of the tourism activities more intensely and more immediately, mainly air transportation of passengers, restaurants and hotels.

All the 12 Federation Units where the indicator was investigated followed this expansion, highlighted by São Paulo (6.0%) and followed by Rio de Janeiro (7.9%), Bahia (33.7%) and the Federal District (26.2%).

Compared with September 2019, the index of volume of tourism activities in Brazil fell 38.7%, the seventh consecutive negative rate, mainly pressed by the drop in the revenue of companies that operate in the sector of air transportation; restaurants; hotels; catering services; road transportation of passengers; travel agencies; and car rental.

In regional terms, all the 12 Federation Units investigated registered a retreat in tourism services, highlighted by São Paulo (-43.8%) and followed by Rio de Janeiro (-31.3%), Minas Gerais (-36.7%), Bahia (-44.5%), Rio Grande do Sul (-46.4%) and Pernambuco (-47.5%).

In the cumulative index in the year, the special aggregate of tourism activities dropped 38.8% 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 prepared food; and travel agencies.