Brazil Services Growth At 16-Month Low

(RTTNews) - Brazil's service sector activity expanded at the weakest pace in the current 16-month sequence of growth in September amid softer inflows of new orders, survey results published by S&P Global showed on Wednesday.

The seasonally adjusted S&P Global Brazil Services Business Activity Index dropped to 51.9 in September from 53.9 in August. However, a reading above 50.0 indicates expansion in the sector.

In September, demand for services rose at the slowest pace since the start of the year. The easing pace of growth was attributed to election uncertainty and a fall in household purchasing power.

On the price front, input price inflation moderated to the slowest pace since August 2020. Reduced taxation and lower fuel prices helped curtail inflation in September. Selling prices also grew at the slowest pace in twenty months.

Service providers continued to raise workforce numbers in September, though the rate of job creation eased to an eight-month low.

Business sentiment remained positive in September, as companies generally expect more stable conditions after the presidential elections, with some hoping for an improvement in domestic consumption.