Financial News: Brazil Service Sector Downturn Eases In August

Brazil Service Sector Downturn Eases In August

09/03/2025 - 09:46:00 (RTTNews)

(RTTNews) - Brazil's service sector logged a marginal deterioration in August as output and new orders fell at slower rates, survey results published by S&P Global showed on Wednesday.

The seasonally adjusted S&P Global Brazil Services Business Activity Index rose to 49.3 in August from 46.3 the previous month. However, any score below 50 indicates contraction.

The survey revealed that a softer deterioration in demand curbed contractions in new business intakes and output. The overall decline was due to demand retrenchment and fierce competition.

Service providers continued to reduce workforce numbers in August amid the combined effect of cost-cutting measures and reduced workloads. Moreover, the rate of job shedding was the quickest in nearly four-and-a-half years.

On the price front, input price inflation accelerated in August due to greater tax burdens, list price adjustments among vendors, unfavorable exchange rates and union agreements, and operating expenses. As a result, selling price inflation remained historically elevated.

The composite output index rose to 48.8 in August from 46.6 in July, indicating a softer downturn in the Brazilian private sector.

Separate official data showed that industrial production dropped 0.2 percent monthly in August versus a flat change in July. On a yearly basis, industrial output advanced by 0.2 percent.

Among major economic categories, capital goods and consumer goods output slid by 0.2 percent and 0.1 percent, respectively, compared to July, preliminary data from the statistical office IBGE showed.

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