Brazils services activity beats forecasts with 1.7% rise in March

div classBodysc17zpet90 cdBBJodivpBy Marcela Ayresp

pBRASILIA Reuters – Services activity in Brazil rose more than expected in March and at a record pace for the month, official figures showed on Thursday, marking a strong recovery from the severe downturn caused by the COVID pandemic. pdivdivdiv classBodysc17zpet90 cdBBJodiv

pServices activity increased 1.7 in March from February, more than double the 0.7 growth expected by economists according to a Reuters poll, reaching its highest level since May 2015, the government statistics agency IBGE reported.p

pThat put the sector 7.2 above the level of February 2020, before the onset of the pandemic. All five activities surveyed in the sector expanded, with the biggest increases seen in transport at 2.7 and information and communication services at 1.7, IBGE said.p

pServices activity gained 11.4 from March 2021, also above the 8.5 increase forecast in the Reuters poll.p

pIn the first quarter, it grew 9.4 over the same period last year, rising 1.8 over the previous quarter.p

pResearch manager Rodrigo Lobo said the weak comparison base pushed the sector higher, noting that Brazil in March 2021 faced a second wave of COVID19 that imposed strict restrictions on mobility. p

p“Thats why in March, in the yearoveryear comparison, there are very high rates for activities like air transport, for example,” he said.p

pBrazils Economy Ministry has argued that the performance of the services sector will support the economy this year, along with a stronger labor market and increased private investment, helping to mitigate the effects of high interest rates to battle doubledigit inflation.p

p

pp Reporting by Marcela Ayres, with additional reporting by Rodrigo Viga Gaier Editing by Mark Potter and Paul Simaop

divdivdiv classBodysc17zpet90 cdBBJodivdivdiv