Service sector

Brazil’s service sector grew in August against the tide

The service sector in Brazil grew by 0.5% between July and August this year, which was the fifth consecutive positive result according to official data. During this five-month period, growth reached 6.5%, pushing the sector 4.6% above pre-pandemic levels and to its highest level since November 2015.

The figures contrast with the negative results of the distribution and industry sectors, in an uncertain economic scenario in Brazil. The country faces high unemployment and inflation rates, political unrest and a looming energy crisis.

Over the 12-month period, services maintained a growth trajectory that began in February. In August, results were driven by four of the five segments surveyed, led by Family Services (4.1%). Information and communication (1.2%) and transport (1.1%) come next, after posting negative results in July.

“Recovery comes as vaccine deployments progress and mobility of people increases. Since June of last year, the services sector has racked up 14 months of positive growth – March 2021 being the only exception,” said survey manager Rodrigo Lobo. “During this month, non-essential businesses were closed by local governments as Brazil faced a second wave of Covid.”