Brazil's service sector continued to exhibit growth in December, although it represented the slowest increase in 2024, according to a report released by S&P Global on Monday.
The seasonally adjusted S&P Global Brazil Services Business Activity Index fell to 51.6 in December, down from 53.6 in November. Despite the decrease, a score above 50 still denotes growth.
The overall expansion of the Brazilian service sector was attributed to persistent demand, which facilitated further increases in new orders, business activity, and employment, as indicated by the survey.
On the other hand, the service economy experienced heightened price pressures, with input costs escalating at the fastest pace seen in almost two and a half years. This was primarily due to the considerable depreciation of the Brazilian real against the US dollar. Consequently, businesses raised their selling prices to the highest level since August 2024.
Looking forward, companies remain optimistic about output projections for 2025. However, the general level of confidence declined to its lowest since May 2021, as businesses expressed concerns about the potentially adverse effects of public policies and economic conditions on their operations.
The composite output index dipped from 53.5 in November to 51.5 in December, highlighting the slowest expansion rate in the Brazilian private sector throughout 2024.
The material has been provided by InstaForex Company -
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