Growth in Brazil’s services sector accelerated in September as sales activity hit its highest level in more than two years amid an improving outlook, the Purchasing Managers’ Index (PMI) survey showed on Thursday. .
S&P Global’s Brazilian services PMI rose to 55.8 in September, from 54.2 in August, completing a year of growth and signaling a stronger increase in output. The 50 mark separates expansion from contraction.
“September saw a pickup in growth in services activity, offsetting the slowdown in August and marking the strongest quarter for the sector since the second quarter of 2022,” Pollyanna De, associate director of economics at S&P Global, said in a note Market Intelligence. .
The survey found that participants cited marketing efforts, positive demand trends and a sustained increase in new business entry as factors behind the outcome.
The sub-index of new orders received by service providers increased at the strongest pace since July 2022.
Services companies expect demand to remain positive over the next 12 months, which has helped drive confidence to its highest level since August 2023, further supported by lower unemployment and investment plans.
Service providers continued to open jobs in September, continuing a trend that began in October 2023. However, the pace of expansion was the weakest in seven months.
The survey also showed that input prices continued to rise at the end of the third quarter, with reports of higher costs for food, fuel and utilities, although the rate of inflation fell from August.
This led companies to increase sales prices again during the month, but less intensely than in August.
As growth in services and industry accelerated, Brazil’s composite PMI stood at 55.2 in September, up from an eight-month low of 52.9 in August.
Source: Terra
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