Brazil Service Sector Downturn Eases In October

(RTTNews) - Brazil's service sector contraction moderated in October amid softer declines in new business and output, survey results published by S&P Global showed on Wednesday.

The seasonally adjusted S&P Global Brazil Services Business Activity Index rose to 47.7 in October from 46.3 the previous month. However, any score below 50 indicates contraction.

The overall lower business activity in October was attributed to demand weakness and the lack of new sales, the survey revealed.

Both new orders and output fell for the seventh successive month, but softer rates than September. Employment rose only marginally as more hiring was constrained by cost control measures.

On the price front, input price inflation accelerated in October, largely driven by high borrowing costs, unfavorable exchange rates and US tariffs. Consequently, selling price inflation rose to 3-month high.

The composite output index climbed to 48.2 in October from 46.0 in September, signaling a moderate decline in the Brazilian private sector.