MercoPress. South Atlantic News Agency
Brazil's service sector slumped 11,7% in April on a year on year basis
According to statistics agency IBGE, the level of service sector activity in Brazil is now 27% lower than the peak in November 2014. Services activity in Brazil slumped 11.7% in April, figures showed on Wednesday, the biggest fall since comparable record-keeping began nearly a decade ago as social isolation measures to combat the COVID-19 outbreak slammed the economy into reverse.
Coming a day after data showed a record crash in April retail sales, the economy’s incredibly weak start to the second quarter would appear to justify the expected cut in interest rates to a new low by the central bank.
Services account for around 70% of Brazilian economic activity, and April reflected the first full month of strict coronavirus-linked policies restricting people’s movement in key states like Sao Paulo and Rio de Janeiro.
According to statistics agency IBGE, the level of service sector activity in Brazil is now 27% lower than the peak in November 2014.
All five sectors surveyed by IBGE showed record declines in activity, with families-related services, which include hotels and restaurants, plunging 44.1% and transport and transport-related services falling 17.8%.
On an year-on-year basis, services sector activity in Brazil fell 17.2% in April, IBGE said, also a record.
The IBGE figures tally with IHS Markit’s services purchasing managers index which fell to a record low 27.4 in April and remained at a depressed 27.6 in May, pointing to a deepening economic contraction.
The central bank is widely expected to cut its benchmark Selic interest rate by 75 basis points to a new all-time low of 2.25% on Wednesday.
Top Comments
Disclaimer & comment rules-
-
-
Read all commentsTerence Hill's favorite hamburger!
Jun 19th, 2020 - 04:42 pm 0https://noblepig.com/2014/09/bacon-avocado-cheeseburger/
Avocados will improve your outlook on the world and make you feel almost a part of the human race again.
Remember, it's not where their grown, but very important the variety. Hass are generally your best choice at the supermarket.
Chicureo the Advocator of the Avocado, Psychological Transferee, Narcissist, Criminal Libeller, & the Spam King
Jun 20th, 2020 - 02:12 pm 0Someone who is that immoral that they have defended Pinochet, tells you every thing about their lack veracity you need to know.
The constipation blocking your intestines will soon be solved by adding healthy avocados to your diet. It will bring you back to humanity!
Jun 20th, 2020 - 06:37 pm 0Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!