Brazil's service sector registers largest monthly growth in October since 2014

Source: Xinhua | 2018-12-15

Brazil's service sector grew 1.5 percent year-on-year in October, its best result in the annual comparison since October 2014, the state-run Brazilian Institute of Geography and Statistics (IBGE) said Friday.
"We're in a scenario of positive rates. In the year-on-year comparison, this has been the third consecutive positive rate, which has shown a gain in momentum compared to the last few years," IBGE said.
On a monthly basis, Brazil's service sector, which accounts for nearly 70 percent of the country's gross domestic product (GDP), grew 0.1 percent in October compared to September.
In the year-to-date total, Brazil's services sector registered a decline of 0.2 percent in 2018, the same that was registered in the past 12 months, although it is less than the decline registered in September, which indicates the sector is on a slow path toward recovery.
In terms of the breakdown of the service sector, the information and communication services made gains of 0.5 percent and had their second straight month of positive results.
In comparison, the main negative result was the professional, administrative and complementary services sector, with a decline of 1.9 percent.
Also experiencing declines were services rendered to families (1 percent) and transportation, transportation support services and mail (0.2 percent).
The fluctuations registered in the volume of the services sector reflect the slow recovery of the country's economy, which, according to the financial market, will grow 1.3 percent in 2018, less than 3 percent forecast at the beginning of the year.
The high unemployment rate, which is above 11 percent, puts the brakes on domestic consumption, one of the main engines of the largest economy in Latin America.