Services sector grows in August, hits fourth consecutive positive rate

The volume of services provided in Brazil in August grew 0.7 percent, the fourth month in a row of positive results. The sector grew 3.3 percent over this period, according to a survey by national statistics bureau IBGE.  

As a result, the sector is operating 10.1 percent above pre-pandemic levels, and less than 1 percent below the highest level on record, registered in November 2014.

Information and communication made the biggest contribution to the volume increase in August, rising by 0.6 percent.

“This result is especially due to the information technology segment, which is very dynamic and also reached the peak of its historical series this month. It is one of the sectors that grew despite the pandemic, mainly due to remote working and the digitization of services,” said survey manager Luiz Almeida. 

With the return of in-person activities, the lifting of coronavirus-related restrictions, and the improvement of employment after the pandemic, the category of services provided to families grew for the sixth consecutive month, expanding by more than 10 percent in this period. 

However, as it was the segment most affected by Covid, it is still 4.8 percent below pre-pandemic levels.

Transportation services suffered a slight decline in August, but Mr. Almeida dismissed this as segment readjustment, given that it is currently 20 percent above pre-pandemic levels and thoroughly recovered from the health crisis.

Passenger transport had advanced by 4.1 percent in July, and dropped 0.5 percent in August. “It’s a slight decrease that gives back a little of July’s bump. But that was a month of vacations, with more people willing to travel,” he explained.

Service sector grows in August, hits fourth consecutive positive rate