Volume of services recovers and grows 0.4% in March
“This result is a trend that has been occurring in the services sector. The services sector rises a little, falls a little; it gets a little better, a little worse. But he has a slight improvement trend.”
In the last 12 months up to March, growth was 1.4%. However, in comparison with the volume registered in March 2023, there was a drop of 2.3%. IBGE research manager, Rodrigo Lobo, explains the decline.
“This result of a more significant drop is a reflection of a smaller number of working days observed, as we had 23 working days in March 2023 compared to 20 working days in March 2024. This then reflects in a smaller number of installment contracts services.”
Activities
According to the PMS manager, Rodrigo Lobo, the expansion in the volume of services in March compared to February 2024 happened in a diffuse manner, as four of the five activities investigated showed an increase.
“The highlights were information and communication services driven by the advancement of companies that work with information technology services, such as information technology consultancy, software development and licensing”, says Rodrigo Lobo.
According to PMS, the information and communication sector grew 4.0% in March, which offset the 2.5% loss recorded in February this year. For economist Stéfano Pacini, this improvement is due to changes in behavior and consumption during the pandemic.
“It was a segment that — with our new normal, with our day-to-day changes — developed more quickly, had a very strong recovery, especially because the demand for this type of service was necessary.”
PMS data also shows that the volume of professional, administrative and complementary services grew 3.8% and recovered from the 2.1% drop in the previous month. The highlights are the areas of business administration in general, engineering services and companies that operate with loyalty programs and discount cards.
Civil engineer Luan Campos Ferreira has his own office in the city of Arceburgo, in the interior of Minas Gerais, where he has been working since 2019. In the entrepreneur’s opinion, the volume of services has increased.
“I have received numerous visits from clients to obtain quotes, both for projects and for the execution of works, because we also work as a construction company and property developer. Arceburgo has been receiving several investments, both in the agricultural and metallurgical sectors; Several companies are setting up shop in the city and, consequently, the number of homes needed to meet this demand is increasing.”
Other activities
PMS data show that the transport sector also contributed — albeit modestly — to the growth in the volume of services in March, with a positive variation of 0.3%. The result is mainly due to collective road transport of passengers; rail freight transport and pipeline transport.
The overall result for March was also driven by the 0.6% growth coming from services provided to families, especially by restaurants. Activities classified as “other services” remained stable with zero variation (0.0%).
The tourist activities index also had a modest positive variation of 0.2% in March, compared to February, after two consecutive months of decline. In the first quarter of 2024, the increase was 0.4% compared to the same period in 2023.
“We have a very small variation. I don’t even like to say that 0.2% is an improvement. I think it is an accommodation, a slight stability of the indicator. But I think the holiday period was actually longer and there is a question of seasonality”, assesses FGV Ibre economist.
Analysis by state
In the analysis by state, 13 of the 27 federation units registered an increase in the volume of service in March compared to February. The positive highlights were Espírito Santo (5.1%), Minas Gerais (1.2%), São Paulo (1.1%) and Rio de Janeiro (1.1%). On the other hand, Mato Grosso do Sul (-9.7%), Mato Grosso (-7.6%), Federal District (-4.0%) and Rio Grande do Sul (-3.6%) had the worst results.
Post-pandemic
The PMS also shows that the volume of services in March was 12.1% above the pre-pandemic level (milestone in February 2020). For economist Stéfano Pacini, the most significant improvement has already passed, but the sector still has growth potential.
“When all mobility restrictions ended, consumers felt completely safe going to the restaurant, taking a trip with their family. So, they had this pent-up demand and it was one of the segments that made the services sector more resilient last year. O boom of improvement, I think it has already passed, but that doesn’t mean it has completely exhausted itself.”
For the coming months, economist Stéfano Pacini estimates that the sector should continue to grow, despite the impact of rains and floods in the South Region.
“Industry is very important in the South: food industry, rice, beans, etc. And the products need to be transported. So, cargo transportation may be difficult. (But) we have a favorable economic environment, on the other hand, of improved income, improved unemployment rates, controlled inflation, reduced debt. This brings security to the consumer and it may be that, mainly, the sector of services provided to families will remain the most resilient sector this year as well.”
IPCA was 0.38% in April; points out IBGE
Inflation increases in five of the seven capitals that make up the IPC-S, according to FGV
Number of breweries in Brazil remains at the highest level in history
By Brasil 61
