Billing of the service sector retreats 3.4% in 2016, says FecomercioSP

SAO PAULO-the service sector in the city of Sao Paulo recorded 3.4% indentation in real revenues in 2016, as the FecomercioSP balance obtained exclusively by the Broadcast, real-time news service of Grupo Estado. The total value amounted to 263.4 billion R$.
According to the institution, the accumulated result last year shows that companies have lost R$ 9.3 billion in revenues in about 2015, value that corresponds to the billing services segment of construction (R$ 9.4 billion). In 2015, the turnover of the companies service industries had already retreated 2.8%, totaling, in two years of crisis, a loss of 17.2 billion R$.
In the last month of 2016 there were interannual comparison, indent of 1%, totaling R$ 22.6 billion in revenues, the lowest turnover, in monetary terms, for the month since 2012.
Of the 13 activities that make up the sector, seven recorded revenue downturn in comparison between December 2015 and 2016. The most significant negative variations were observed in the scientific and technical categories ( -28.6%), tourism, lodging, events and the like ( -23.3%), representation ( -19.1%), maintenance, cleaning and Repair of movable ( -11.4%) and Marketing and communication ( -11.3%). On the other hand, the health care industry had the most significant positive result (25.1%).
In the last year, the highlights were similar. The main negative contributions were the segments of Civil Construction ( -22.6%), Scientific-technical ( -16.3%), representation ( -15.9%) and Marketing and communication ( -12.2%). On the positive side, the FecomercioSP highlighted the rise of 21.3% in actual revenue Health segment.
The institution said in a statement that the decline of the industry''s turnover is a reflection of the economic and political crisis. The FecomercioSP also explained that the expansion of health services revenue are justified by rising unemployment. "People try to anticipate consultations and exams they need while still have health insurance."
The recovery of losses in the sector, highlights the FecomercioSP, will depend on the resumption of crucial variables of consumption, and the indicators of employment, income, credit and the reduction of interest rates and inflation. "The recovery of such indicators will work for that business confidence is restored in order to contemplate in their planning possible investments and/or hiring certain services," says in a statement.