The service sector accumulates an increase of 7.9% in Minas Gerais

The service sector in Minas Gerais recorded an increase of 7.9% between January and July compared to the same period last year. The data is from the Monthly Survey of Services (PMS), published yesterday by the Brazilian Institute of Geography and Statistics (IBGE).

In July alone, the sector recorded a growth of 1.9% compared to the previous month. Compared to the same range last year, the increase was 6.9%.

According to IBGE information analyst Daniel Dutra, the July score was the second highest in the historical series that began in 2014. “We had the highest peak in May, when the sector recorded 107.55 points. Now, in July, the score has reached 106.65, the second major peak. This shows that the trend is towards important growth for the service sector of Minas Gerais”. The worst recorded phase, according to the historical series, was in 2020, with the beginning of the pandemic, when the sector recorded drops below 100 points for several months.

Dutra explains that with the easing of measures to combat the Covid-19 pandemic, between July and August 2021, the sector began to gain strength.

Among the highlights is the group of services for families, with an increase of 44.6% from January to July compared to the same period last year. This classification includes the services of hotels, restaurants, concert halls, gyms, beauty salons and funeral homes, for example.

The growth of this group is a consequence of the recovery of most services that are considered non-essential during the pandemic. To them were added services that were already working, but in a different format, including institutions that accepted deliveries delivery.

The following is a group of activities consisting of transport and auxiliary services for traffic and mail. According to IBGE, these segments grew by 17.3% in the year, compared to the same period in 2021. “This increase is due to the high demand for buying and selling provided by e-commerce. As a result, the market had to meet the strong demand for transport and logistics services. Another important factor for this increase was the continuation of spending by air and land,” explains the IBGE analyst.

The worst results during January and July of this year, according to the survey, were the grouping which, in addition to basic sanitary services, includes real estate services, car maintenance, electronics maintenance, insurance brokers and insurance companies. These segments recorded a 35% drop in the year compared to the volume of services offered in the same period last year.

July

Compared to July and June, the service sector in Minas recorded progress of 1.9 percent. Meanwhile, Brazil showed less progress, at 1.1% over the same period.

In that period, two of the five most prominent services are transport, with a growth of 2.3 percent, and information and communications, with a growth of 1.1 percent. The transport sector accumulated a growth of 3.9 percent in the last three months, and in July it was mainly influenced by the good results of activities such as port and terminal management and highway concessionaires. Freight transportation, which grew by 19.7 percent from October last year, grew by 1.2 percent in July.

The result is above the level before the pandemic

Brazil and Rio – After boosting GDP growth in the first half of the year, Brazil’s services volume rose well above analysts’ expectations in July for the third straight month of month-on-month growth, taking the sector to 8.9% above the previous month. levels before the pandemic, data from the Brazilian Institute of Geography and Statistics (IBGE) showed yesterday.

The monthly performance was benefited by services focused on business activities, and boosted by school holidays that boosted demand for tickets and accommodation, even in a high inflation scenario.

In July, compared to June, in the seasonally adjusted series, the services sector grew by 1.1 percent, and compared to the same period last year, by 6.3 percent at most, according to the Monthly Survey on Services.

Expectations in a Reuters poll were for gains of 0.5% on a monthly basis and 5.8% on an annual basis.

According to IBGE, the most significant sectors of the month were transport sectors, which grew by 2.3% compared to June, and information and communications, which grew by 1.1%. Services for families increased by 0.6%.

The other two surveyed groups — other services and professional, administrative and complementary services — fell by 4.2% and 1.1%, respectively.

“This continuation of growth is quite significant and is related to services intended for companies, such as information technology and freight transport, which showed expressive growth and reached, in July, the highest points in their respective series,” said the head of the research, Rodrigo Lobo , in the note.

He emphasized that high inflation affected the sector – as indicated by the growth of nominal revenues from services above the volume expansion on an annual level – without being an obstacle to the growth of services, whose demand was strongly suppressed during the pandemic. .

In the year to July, the volume of services grew by 8.5% compared to the same period in 2021. In the 12 months, the increase was 9.6% — slowing down from 10.5% in June and 12.8% in April.

Lobo said he considers the loss of rhythm “natural”. “It is difficult to have two years in a row of strong and widespread growth,” he said, noting the sector’s strong performance in 2021, with an increase of almost 11%.

With the July result, the services sector is 8.9% above its pre-pandemic level (February 2020) and 1.8% below its all-time high, reached in November 2014, IBGE said.

Consumer inflation rose 8.73% in the 12 months to August, well above the Central Bank’s 2022 target of 3.50%.

The services sector was one of the main drivers of gross domestic product in the second quarter of the year, when the economy as a whole grew by 1.2% in the previous three months, with services growing by 1.3%. (Reuters)

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