Brazil’s service sector beats forecasts, hits record high in June
2024.08.13 09:04
SAO PAULO (Reuters) – Services activity in Brazil grew more than expected in June to hit an all-time high, eclipsing a record that had been set in December 2022, data from statistics agency IBGE showed on Tuesday.
The service sector, which accounts for about 70% of all activity in Latin America’s largest economy, grew 1.7% in June from the previous month, IBGE said, exceeding the 0.8% expected by analysts polled by Reuters.
All of the five main groups surveyed by the agency posted positive results in the period, with a 1.8% expansion in transportation notably offsetting a negative reading in the previous month, IBGE said.
“The result is largely due to air transport, driven by a drop in air ticket prices,” research manager Rodrigo Lobo said.
Services activity was also up 1.3% in June from a year earlier, according to IBGE, again beating the 0.8% expected by economists in the Reuters poll.
The sector now stands 0.5% above the previous record high in the IBGE data series, which had been set in late 2022, the statistics agency added.
