Brazil’s service sector grows for the 1st time in 6 months

10

The strong increase in new jobs helped Brazil’s service sector to grow in June for the first time in six months and at the strongest pace in nearly eight and a half years, with the hiring of employees, the Managers Index survey showed on Monday. Purchasing (PMI).

  • Interest, Dollar, Inflation, BC, Selic. Understand all the terms of economics. Sign the EXAM

IHS Markit said its PMI index rose in June to 53.9, from 48.3 in May, surpassing the 50 mark, which separates growth from contraction.

It was the first time that the service sector PMI, heavily affected by Covid-19’s containment measures, was in expansion territory for the year, recording the strongest pace since January 2013.

“Service companies registered the strongest monthly increase in activity in almost eight and a half years, and there was a new increase in employment as many companies sought to replace workers who had been laid off earlier in the year,” said the associate director of Economics at IHS Markit, Pollyanna De Lima.

“Some companies hope that as more people are immunized… the pandemic will recede and the restrictions will be completely lifted. (But) the pandemic is far from over, in Brazil and elsewhere, with the emergence of new variants and lack of vaccines in many countries raising doubts about the sustainability of Brazil’s economic recovery,” she warned.

According to the interviewees, the advance of the index was due to the improvement in demand due to the suspension of some restrictions adopted against the coronavirus, in addition to the ongoing vaccination program.