In the seasonally-adjusted series, volume of services in Brazil fell 3.1% in January 2023 over December. As a result, the services sector was 10.3% above the level of February 2020 (pre-pandemic) and 3.1% below the rate of December 2022 (peak of the time series).

In the seasonally-unadjusted series, volume of services advanced 6.1% over January 2022, the 23rd positive rate in a row.   The cumulative index in 12 months changed from 8.3% in December 2022 to 8.0% in January 2023, the lowest figure since September 2021 (6.8%).

The retraction of 3.1% in volume of services in January 2023, in the seasonally-adjusted series, was followed by three out of five activities investigated, highlighted by the sectors of transportation (-3.7%) and other services (-9.9%), the former offsetting the gain of 3.2% registered in the last two months last year, and the latter completely offsetting the expansion of 9.4% recorded last December. The other retreat this month came from professional, administrative and complementary services (-1.5%), after expanding 3.8% in the November-December 2022 period.

On the other hand, information and communication (1.0%) and services rendered to families (1.0%) exerted the positive contributions this month, the former sector recovering part of the drop (-2.5%) recorded in the last two months of 2022, and the latter reporting the second consecutive positive figure, a period in which it accumulated a gain of 3.5%.

The quarterly moving average was -0.1% in the quarter ended in January 2023 against the previous month. Among the sectors, still in the seasonally-adjusted series, three out of five activities retreated over the level of the quarter ended in December 2022: other services
(-1.3%), information and communication (-0.5%) and transportation (-0.2%). Services rendered to families (1.0%) and professional, administrative and complementary services (0.8%) rose.

Volume of services advanced 6.1% over January 2022, the 23rd positive rate in a row. This month’s result was marked by an expansion in four out of five dissemination activities and in 63.9% of the 166 types of services investigated.

Among the sectors, that of transportation, support activities for transportation and mailing (6.0%) exerted the major positive contribution to the total volume of services, leveraged, to a great extent, by the increase in the revenue of the enterprises of mass road transportation, cargo road transportation, port and terminal management, cargo railway transportation, storage and car parking.

The other advances came from professional, administrative and complementary services (8.3%); information and communication (5.9%); and services rendered to families (11.4%), which increased revenue in: engineering services, car rental, travel agencies, collection agencies and credit bureaus, rental of machinery and equipment, and business management consulting, in the first sector; telecommunications, software development and licensing, consulting in information technology, development of computer programs on demand, and data handling, providers of application services and services of Internet hosting, in the second one; and restaurants, hotels, catering services, theater and performances, and fitness activities, in the last one.

The only negative rate this month was in other services (-0.1%), pressed by the lower revenue coming from enterprises in the sectors of auxiliary financial activities, securities brokerages, and management of stock exchange and organized over-the-counter markets.

Services retreat in 16 of 27 Federation Units in January

In regional terms, most (16) of the 27 Federation Units recorded a retraction in volume of services in January 2023 compared with the immediately previous month, following the retreat registered for Brazil (-3.1%).

The most intense negative impact came from São Paulo (-2.6%), followed by Rio de Janeiro
(-5.5%), Minas Gerais (-2.6%) and the Federal District (-7.2%). The biggest positive contribution this month came from Paraná (3.0%), followed by Bahia (2.4%), Espírito Santo (3.9%) and Piauí (13.3%).

Volume of services grew in 25 out 27 Federation Units against January 2022. The major positive contribution came from São Paulo (4.3%), followed by Rio de Janeiro (8.2%), Minas Gerais (10.9%), Paraná (12.1%) and Rio Grande do Sul (11.5%). On the other hand, Mato Grosso do Sul (-6.4%) and Acre (-2.0%) reported the only negative figures this month.

Tourism activities change 0.5% in January

In January 2023, the index of tourism activities expanded 0.5% against the immediately previous month, the second positive rate in a row, a period with a cumulative gain of 5.3%. As a result, the tourism segment was 2.5% above the level of February 2020 and 4.6% below the peak of the time series, reached in February 2014.

In the January 2023-January 2022 comparison, the index of tourism activity in Brazil rose 12.9%, the 22nd consecutive positive rate, leveraged by the sectors of car rental, restaurants, hotels, mass road transportation, travel agencies, catering services and theater and performances.

Eleven out of 12 Federation Units where the indicator is investigated registered an advance in tourism services, highlighted by São Paulo (16.4%), followed by Minas Gerais (24.7%), Rio de Janeiro (7.3%), Rio Grande do Sul (16.6%) and Bahia (14.5%). On the other hand, the Federal District (-2.5%) recorded the only negative result.

Transportation of passengers (-2.4%) and of cargo (-2.1%) retracted

After advancing 11.5% in the last two months of 2022, volume of passenger transportation in Brazil decreased 2.4% in January 2023 over the immediately previous month in the seasonally-adjusted series. This way, the segment was 3.0% above the level of February 2020 (pre-pandemic), and 20.0% below that of February 2014 (peak of the time series).

On its turn, volume of cargo transportation fell 2.1% in January 2023, offsetting the gain of 2.1% registered in the November-December period last year. This segment was 3.6% below the peak of the series, reached in August 2022.  In comparison with the pre-pandemic level, cargo transportation was 28.6% above that of February 2020.

Compared with January 2022, mass transportation recorded the 22nd positive rate in a row by advancing 9.0% in January 2023, whereas cargo transportation, in the same comparison, increased 10.4%, its 29th consecutive positive increase.