The business environment improved, says PMI

The service sector of Brazil had in February, stronger growth in a year, boosted by a strong increase in new business, who favored the recruitment of staff, showed on Thursday the research index of Purchasing Managers (PMI, English). The PMI Brazil services rose from 52 to 52.2 between January and February, thanks to stronger demand, confidence in the new Government and to obtain new customers, according to IHS Markit. Indexes above 50 indicate growth. The new business accelerated in the month to the strongest level since January 2013, with robust sales registered in the sectors of Information and communications, finance and insurance, and real estate and Business Services. The international demand had slight increase. Under the favorable conditions of demand and optimistic projections, the Brazilian service providers created new jobs in February. The increase in the number of employees was the second in the last four years. In relation to the prices charged, the PMI showed the first decrease since may 2018, after three months of mild high. Companies that offered discounts have cited competition and initiatives to increase sales. "For service providers, the decision to resume hiring efforts contributed to increase more pronounced in charge. We see that the margins were compressed for price discounts in the midst of a competitive environment, "said Markit Economist of IHS Pollyanna. Have confidence the sector strengthened, with nearly 64% of companies optimistic about the Outlook for the the next 12 months, reaching the highest level since October. The predictions of structural reforms, investments, new partnerships, offer more extensive of products and a better political environment favored the improvement in confidence.