2024.01.0413:05:00UTC+00Brazil Services Sector Expands Modestly In December

Brazil's service sector actiivty signalled moderate growth in December, as output and new sales rose at the slowest pace in three months, survey results published by S&P Global showed on Thursday.

The seasonally adjusted S&P Global Brazil Services Business Activity Index dropped to 50.5 in December from 51.2 in the previous month. However, a score above 50 indicates expansion.

Growth in new orders and output eased to the weakest in their respective three-month sequences of expansion and were slight at best.

While demand resilience supported sales at some companies, others signalled shortages of new work, the survey said.

On the price front, input cost inflation receded to its lowest mark in nearly three-and-a-half years but remained sharp on elevated costs for energy, food, fuel, and water. Meanwhile, selling price inflation was the fastest in seven months.

Employment rose only fractionally in December as cost considerations suppressed job creation.

The composite output index stayed stable at the neutral threshold of 50.0 in December, indicating a stabilisation in the Brazilian private sector. Growth softened in the service economy, while manufacturing production experienced a faster decline.