Brasília, Brazil – In April 2023, the volume of services in Brazil experienced a significant decline of 1.6% compared to the previous month, according to the seasonally adjusted series. This drop comes after a 2.1% increase between February and March, highlighting the challenges faced by the sector. Despite the contraction, the service industry remained 10.5% above the pre-pandemic level of February 2020 but was 2.9% below the peak of December 2022.
When compared to April 2022, the volume of services showed a 2.7% increase, marking the 26th consecutive month of positive growth. However, the cumulative index for the year was 4.8%, and the 12-month cumulative index decreased from 7.3% in March to 6.8% in April, the lowest level since August 2021 (5.1%).
The transportation sector experienced the most significant decline, with a 4.4% contraction, partially offsetting the 7.5% gain observed between February and March. Other sectors that contributed to the decline included information and communication services (-1.0%), professional, administrative, and complementary services (-0.6%), and other services (-1.1%). The only sector that saw expansion in April was services rendered to families, which grew by 1.2%, recovering part of the 2.2% loss observed in the previous two months.
Among the activities surveyed, transportation, information and communication, and professional, administrative, and complementary services saw positive rates in the seasonally adjusted series, while other services and services rendered to families experienced negative rates.
The positive trend in the volume of services compared to April 2022 was seen in four out of five activities and in 57.2% of the 166 types of services surveyed. Information and communication services (4.0%) and professional, administrative, and complementary services (4.0%) made the most significant contributions to the overall growth, while transportation, support services for transportation and mailing (2.0%) and services rendered to families (2.9%) also showed increases. However, other services (-0.9%) recorded a negative result.
The decline in the volume of services in April was widespread, with 26 out of the 27 Federation Units experiencing a decrease compared to March. São Paulo (-1.5%) and Rio de Janeiro (-5.5%) had the most significant impacts, followed by Santa Catarina (-3.5%), Goiás (-5.6%), and Mato Grosso (-4.2%). The only positive contribution came from Ceará (1.0%).
When comparing April 2023 to April 2022, the increase in the volume of services was observed in 23 out of the 27 Federation Units. The largest positive contributions came from Minas Gerais (6.9%), Paraná (8.7%), Santa Catarina (10.7%), São Paulo (0.6%), and Rio Grande do Sul (5.3%). Mato Grosso do Sul (-1.3%), Alagoas (-1.8%), and Amapá (-4.2%) were the only states with negative results.
The cumulative result for the first four months of 2023, compared to the same period in 2022, showed an overall increase of 4.8% in the volume of services in Brazil. São Paulo (2.4%) led the positive impact, followed