The services volume in Brazil drops by 4.7% y/y in January

Brazil’s volume of services recorded the eleventh annual drop in a row in January, falling by 4.7% y/y, amid an increase in the number of COVID-19 infections and a health care system collapse in the state of Amazonas, in the North region.

Notably, the services provided to families fell by 27.6% y/y in the first month of 2021, reflecting the impact of the social distancing measures in hotels, restaurants, bars, and other face-to-face activities. Information and communication services, on the other hand, grew by 1.7% y/y in January, supported by an increase of 13.4% y/y of IT services.

Read the latest CEIC Leading Indicator analysis for Brazil - 'Vaccination delays hamper Brazil’s economic recovery'.