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Brazil’s service sector activity expanded at the slowest pace in one-and-a-half years in November amid a weaker rise in output and new orders, survey results published by S&P Global showed on Monday.
The seasonally adjusted S&P Global Brazil Services Business Activity Index dropped to 51.6 in November from 54.0 in October.
However, a reading above 50.0 indicates expansion in the sector.
Further, this was the slowest rate of expansion in the current 18-month sequence of growth.
Growth in new orders was also the weakest in eighteen months, and the upturn was curbed by political and economic issues.
On the price front, input price inflation was marked in November, linked to higher expenses for equipment, fertilizers, food, refurbishment materials, and hygiene products affected by US dollar strength. The rate of charge inflation was historically marked, but eased from October.
Employment levels also increased at the softest rate in eighteen months, with some firms highlighting the replacement of voluntary leaders and sustained gains in new business.
Although marketing efforts as well as expectations of contained inflation, lower interest rates, and structural reforms supported business confidence, positive sentiment fell to a 13-month low in November amid growing concerns surrounding the economy and politics.
The composite PMI, which combines manufacturing and services, dropped below the threshold mark of 50.0 in November, falling to 49.8 in November from 53.4 in the previous month.
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