Brazil Services Activity Expands Least In 5 Months

(RTTNews) - Brazil's service sector grew at the slowest pace in five months amid a weaker rise in new orders, survey results published by S&P Global showed on Thursday.

The seasonally adjusted S&P Global Brazil Services Business Activity Index dropped to 50.2 in July from 53.3 in the previous month. However, a score above 50 indicates expansion.

New orders expanded at the slowest pace since March, as several firms noted a retrenchment in demand and client hesitancy.

On the price front, input price inflation softened from June and was one of the weakest seen in three years. In July, sales prices were limited by retreating cost pressures and slowing demand growth, as the rate of inflation was the slowest in thirty two months.

As a result of efforts to fill existing vacancies, employment in services increased, though the rate of job creation was only slight and slowed to the weakest since March.

Although businesses expected output to increase on average in the coming year, overall optimism fell to a 26-month low in July.

The composite output index slipped to 49.6 in July from 51.5 in June, indicating a marginal contraction in private sector output, with manufacturing production falling further and service activity growth softening to a five-month low.