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2026-07-15 20:54:11
[Brazil's service sector unexpectedly declined by 0.4% in May, with the transportation sector dragging down growth significantly; year-on-year growth fell short of expectations] ⑴ Data released by the Brazilian Institute of Geography and Statistics on Wednesday showed that, after seasonal adjustment, service sector activity in May fell by 0.4% compared to April, far below the market expectation of a 0.1% increase, ending the previous trend of continuous improvement. ⑵ The decline was mainly dragged down by transportation services and other services, which fell by 1.0% and 1.9% respectively, reversing the growth trend in April and becoming the main force suppressing the overall index. ⑶ Some sub-sectors remained resilient: professional and administrative services rose by 1.9% month-on-month, household services increased slightly by 0.2%, while information and communication services remained flat month-on-month, not posing an additional drag on the overall index. ⑷ Year-on-year, service sector activity in May grew by only 0.4%, also lower than economists' expectations of a 0.9% increase, indicating that the expansion momentum of Brazil's service sector was weaker than expected. The future focus should be on whether key sub-sectors such as transportation can stabilize and rebound.
