After tumbling in may, service sector grows 6.6% in June, says IBGE

The volume of services provided in Brazil advanced 6.6 percent in June, compared with may, according to industry research released on Tuesday (14) by the Brazilian Institute of geography and statistics (IBGE). According to the IBGE, this is the biggest result of the historical series, initiated in January 2011. High, however, comes after a fall of 5% in May (in revised numbers)-the largest ever recorded by the survey – also, strongly influenced by the truckers ' strike, which lasted 11 days in late May. Despite having achieved more than recover the losses may, ended the second quarter with a decline of 0.3% in comparison with the first quarter of the year-the second consecutive drop. In comparison with the same quarter of 2017, there were 0.3% fall-the 14th falling on this basis of comparison. The service sector has a strong weight in the brazilian economy, representing approximately 70% of gross domestic product (GDP), and still hasn't managed to recover the losses of recent years. Closed the month of June operating at a level similar to February last year, getting 10.5% below the highest peak of the sector, achieved in January 2014. In the fall semester and accumulated in 12 months In relation to June 2017, the volume of services advanced 0.9%. With this, there was a reduction in the rate of fall of the year, which went from-1.3% in May to-0.9% in the first half. Already earned in 12 months stood at-1.2%, surpassing the previous result to the truckers ' strike, in April the indicator had been de-1.4% and 1.6% in May-. Despite the negative result, the IBGE points out that there are signs of recovery. Expectations of analysts heard in Reuters research were that the sector would have 3.2 expansion in June on a monthly comparison, but retracting 0.3% on a year earlier. "We had irreparable losses in May and they don't fall apart. At the end of the year, if we have a positive result, he might be higher were it not for the losses that month. And if the result is negative, it could be less intense were it not for the effects of the Teamsters ' strike, "said the Manager of the monthly Research Services, Rodrigo Wolf. Performance by sector the transportation sector, the most affected by the truckers ' strike in may, rebounded in June, growing 15.7% compared to the previous month, after a fall of 10.6 percent in May. The land transport segment had high of 23.4%, reversing 15.4% drop in the previous month, boosted by an increase in revenue of the companies of transport of cargo. Other highlights were the high branches of information and communication services (2.5%), other services (3.9%) and professional, administrative services and complementary (0.4%). On the other hand, the services provided to families retreated 2.5 percent, the second negative rate then. Also recorded fall food and accommodation services (-2.4%) and professional and technical services (-2.2%). Services of restaurants in fall Of four major segments, only those services provided to families had fall in June. According to the IBGE, which explains the retreat of this segment are the restaurants. The services provided to families, according to Wolf, has been suffering negative economic pressure. One of the main activities of this segment, the services provided by the restaurants represent 45% of the volume of services provided to families. By regions, 22 of the 27 Regional States had high in services in June, compared with the month immediately. The highlight was Sao Paulo, with a high of 4.6%, high more intense since the beginning of the historical series. Other positive results came from Minas Gerais (9.8%), Paraná (10.1%), Rio de Janeiro (3.6%), Mato Grosso (22.6%) and Bahia (9.7%). Slow recovery "expected a good number [for the service sector in June], for recovery of the transport sector, but, somehow, the feeling is that even above, was highly concentrated in that category. Services rendered to households fell for the second month in a row. Anyway, it doesn't change much the trend of a very gradual recovery, "said economist Luiz Fernando Castelli, GO. With unemployment still high and low business confidence in the face of uncertainty about the election, the pace of economic recovery is still slow pace. Latest research Focus of the Central Bank, who hears about a hundred economists every week, points out that the expectations for economic growth for this year at 1.49 percent, half of what was expected a few months before. The federal Government recently reduced your weather forecast GDP growth this year of 2.5% to 1.6%. Until may, was at 2.97%. The second quarter GDP, analysts project a result close to zero and may even go negative in evaluating some consultancies, after a high of 0.4 percent in the first quarter.