Brazil Services Growth Strongest In 13 Months

(RTTNews) - Brazil's service sector expanded at the quickest pace in just over a year in December, driven by a rebound in demand, survey results published by S&P Global showed on Tuesday.

The seasonally adjusted S&P Global Brazil Services Business Activity Index dropped to 50.1 in December from 53.7 in the previous month. A score above 50 indicates expansion.

New orders also grew at the quickest pace in thirteen months on the back of better underlying demand conditions. Consequently, firms raised additional workforce numbers at the fastest pace in nine months.

On the price front, input prices rose further due to higher costs for electrical items, energy, food, labor, and transportation, along with unfavorable exchange rate movements. However, the rate of inflation eased to its lowest in just over a year-and-a-half. Selling prices also increased at the slowest pace in three months.

The composite output index rose to 52.1 in December from 49.6 in November, signaling the first expansion in the Brazilian private sector output for nine months.