Demand improvement and expansion of services in Brazil gains momentum in September

São Paulo — the expansion of the services sector in Brazil gained momentum in September, in view of the improvement of demand and the level of employment increased, but the confidence suffered a slight decline, showed this Thursday the search index of purchasing managers (PMI) . According to the IHS Markit, the PMI of services rose to 51.8 in September, from 51.4 in the previous month, above the mark of 50, which separates growth of contraction. The research showed that the month was marked by the signing of large projects, better demand and favorable economic policies. The entry of new business reached the strongest pace in six months, as a result of expanding the customer base and strengthening demand, according to the interviewees. Of the five monitored subsectors, three recorded an increase in the new studies. However, the new orders from abroad continued to present contraction for the seventh month, although the rate of losses was the weakest in the period. On the other hand, the pace of creating job vacancies in September was the strongest in more than four and a half years, led by the finance and insurance sub-sector. The costs of the inputs continued to increase and reached the highest level in four months, with respondents citing the depreciation of the real and higher prices of fuels, auto parts, construction materials, food and payroll. Service providers have passed this to their sales prices, whose inflation rate has been the strongest since March. The companies indicated that the improvement of economic conditions, public support policies, larger investments and new technologies should lead to production growth in the next 12 months, but still the degree of optimism fell to a minimum of three months . In September, Brazilian industry grew for the second month followed, which helped the PMI compound to rise to 52.5, from 51.9 in August. The result shows that private sector activity has had the strongest increase since March. "The relatively better environment for demand, coupled with lower borrowing costs due to the looting of monetary policy, should feed consumption and investment in the short term, ensuring that Brazil's economy remains in a trajectory of Recovery, "said IHS economist Markit Pollyanna De Lima.