New work volume increases and service sector is stable in January, shows PMI

SAO PAULO-the activity of the service sector in Brazil has stabilized in January with the increase in the amount of new work, leading the optimism among companies at the best level in four months, according to research purchasing manager Index (PMI, English) disclosed on Monday. The IHS Markit reported that the Brazilian services PMI rose to 50 in January to 47.4 in December, reaching the mark that separates growth from contraction and indicating the absence of change in production. Companies that have registered expansion of activity cited new offerings and a larger base of customers, while those who had mentioned contraction fierce competition and difficult economic scenario. The stronger demand has led to the increase in the volume of new business in early 2018 in four of the five categories monitored, Transport and storage being the exception. For the next 12 months, entrepreneurs continued designing higher levels of activity, with optimism fueled by restructuring plans, expectations of better economic environment and projects being prepared. Still, some companies reduced jobs in January seeking to contain expenditure and the level of employment fell by 35 month followed according to the survey. The costs of the inputs were discharged from sharp in the month, with reports of higher fuel expenses, water and energy. After they left the sales prices unchanged in December, the first month of the year of services companies in the country decided to increase them to the strongest rate since May last year. Industry already the PMI showed that the brazilian industry sector continued to grow in January, albeit at a weaker pace, and with it the composite PMI Brazil returned to expansion territory for the first time since September when going to 50.7 mark , from 48.8 in December. "The data indicated that the brazilian economy has rebounded earlier this year of contraction seen during the last quarter of 2017, to be resumed, although modest, reflected a stabilisation in services sector activity, as well as sustained growth in industrial production ", assessed the IHS Markit Economist Pollyanna de Lima