Services fall back down after fleeting improvement

Sao Paulo-the business activity Index (PMI) for services as measured by the Markit IHS returned to present negative variation during may after revert, in April, a succession of 26 months of fall in a row.
The sector ended the fifth month of the year with 49.2 points up from 50.3 in April, returning to the level that configures retraction-or under 50 points. The PMI of USA, for your time, remained above the dividing line, from 50.1 to 52.
The movement of the service sector was ranked by IHS Markit Economist, Pollyanna, as "disappointing after [the industry] have shown signs of revival in the worst recession ever recorded". According to her, "a weak growth in the number of new jobs was insufficient to take companies to increase the activity". The Economist still highlighted concerns about the lack of public safety and with political uncertainty as factors that boosted the fall.
During may, the index of companies that reduced the work force reached 14% of heard (reflecting the need to cut in operating costs), while those that have increased the teams stayed at 7%. According to Markit, the rate of loss of jobs in the service sector was "the weakest in two years"; still, the indicator was classified as solid.
The industry downturn in may occurred despite the volume of new business received have grown for the fourth month in a row – albeit in slower to realize the previous month.
The consultancy still pointed out that the average cost of providers grew again, driven by the high inputs like fuel and paper. Such costs were passed on to customers, generating a "modest" inflation before April.
In the analysis of sectors, Pollyanna de Lima pointed out the segment of Hotels and Restaurants as the owner of the worst performance, "with the volume of business and activity falling sharply in May. On the other hand, the post and telecommunication sectors and Financial Intermediation presented breakthrough in production during the same month.