News Release
Embargoed until 1000 BRT (1300 UTC) 6 May 2024
S&P Global Brazil Services PMI®
Service sector expands strongly in April
Key findings
Output and sales rise at softer, but above-
trend rates
Job creation second-fastest in a year
Charge inflation eases despite robust increase
in costs
Brazilian service providers indicated a marginal loss of
growth momentum in April, though rates of increase in
business activity and new orders were among the strongest
since the first half of 2023 and above their respective
long-run averages. Sustained expansions in new work
intakes encouraged companies to raise staffing levels,
despite positive sentiment regarding the year-ahead outlook
for output falling to its lowest level since July 2023.
Meanwhile, higher input and labour costs pushed up
expenses. The rate of inflation was unchanged from March's
five-month high. Output charges also rose, albeit to the least
extent since October 2023.
At 53.7 in April, the headline S&P Global PMI® Brazil Services
Business Activity Index remained above the neutral level
of 50.0 and signalled continued growth across the sector.
Although coming in lower than in March (54.8), the latest
reading was above its long-run average and consistent with
a marked rate of expansion. The upturn was also the seventh
in successive months and one of the strongest in nearly a
year.
The rise in business activity stemmed from sales growth,
anecdotal evidence showed, which in turn was underpinned
by local concerts, events, marketing initiatives and demand
resilience. As was the case for output, the rate of expansion
in new orders softened from March but remained historically
robust.
Mirroring the trend for new business intakes, recruitment
rose for a seventh successive month at the start of the
second quarter. The rate of job creation was solid and the
second-fastest in a year, despite slowing since March.
Besides rising sales, Brazilian service providers lifted payroll
numbers in line with upbeat growth forecasts. Around 44%
of panellists anticipate higher output over the course of
the coming 12 months, amid new client proposals, demand
resilience, planned events and marketing efforts. That said,
S&P Global Brazil Services Business Activity Index
sa, >50 = growth since previous month
70
60
50
40
30
20
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24
Source: S&P Global PMI.
Data were collected 11-25 April 2024.
Comment
Pollyanna De Lima, Economics Associate Director at
S&P Global Market Intelligence, said:
"Cost pressures across Brazil's service economy showed
no signs of abating in April, with the rate of inflation
matching that seen in March and being the joint-
strongest since last October. Although this continued to
feed through to output prices, charge inflation retreated
on the back of discounts at firms that attempted to
stimulate sales.
"The gap between rates of output charge and input cost
inflation was the widest since last October, suggesting
that services companies continued to absorb most of
the upturn in expenses.
"While rising inflation and pressure on firms' margins are
of concern, service providers were still able to generate
strong growth of activity and new business as the sector
benefited from demand resilience, local events and
successful marketing efforts. What's more, employment
increased solidly in April.
"Companies hope that economic conditions will remain
on an upward path, but there was a loss in positive
sentiment in April."
© 2024 S&P Global
S&P Global Brazil Services PMI®

the overall degree of optimism recorded in April was the least PMI Services Business Activity Index Services value added
pronounced in nine months and below its long-run average. sa, >50 = growth since previous month % yr/yr

70 13
Capacity expansion continued to support service providers
in their efforts to reduce outstanding business volumes. 8
60
Backlogs decreased at a slower rate than in March, albeit
one that remained sharp overall. 50 3
Reflecting greater outlays on inputs, labour, transportation
40 -3
and utility bills (energy and water), overall cost burdens rose
further in April. In some instances, a depreciation of the -8
30
Brazilian real against the US dollar was reported as having
added to cost pressures. The overall rate of inflation was 20 -13
sharp, equal to March and the joint-strongest since last '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24
October. Sources: S&P Global PMI, IBGE via S&P Global Market Intelligence.

Subsequently, prices set by Brazilian services companies

rose further. The rate of inflation was solid and above its
trend, but eased to a six-month low. The upturn was curbed
by price cuts at firms that attempted to secure new work via
discounting.

S&P Global Brazil Composite PMI®

April sees output growth holding close to March's

recent joint high
Falling only marginally from 55.1 in March to 54.8 in April, Composite Output Index Gross Domestic Product (GDP)
the S&P Global Composite PMI® Output Index* pointed to sa, >50 = growth since previous month % yr/yr

a strong rate of growth across the private sector, and one 70 15

that was one of the fastest in nearly two years. There was a 65 12
slower increase in services activity, while factory production 60 8
expanded to the greatest extent since December 2020. 55 5
In addition to signalling a faster rise in output, goods 50 2
producers also noted a stronger upturn in new business 45 -2
inflows than services firms. Collectively, sales expanded at 40 -5
the quickest pace in 21 months. 35 -8
30 -12
Brazil's labour market reaped the benefits of improving 25 -15
demand trends, with private sector employment increasing '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24
markedly in April. The rate of job creation was the second-
strongest since October 2022. Sources: S&P Global PMI, IBGE via S&P Global Market Intelligence.
*Composite PMI indices are weighted averages of comparable manufacturing and
Both input costs and output charges rose at faster rates at services PMI indices. Weights reflect the relative size of the manufacturing and service
the composite level. Respective paces of inflation were at sectors according to official GDP data.

ten- and two-month highs. Charge inflation softened among

services firms, but hit a 20-month high at goods producers.

© 2024 S&P Global

S&P Global Brazil Services PMI®

Brazil Services PMI Employment Index Brazil Services PMI Input Prices Index
sa, >50 = growth since previous month sa, >50 = inflation since previous month

65 90
60
80
55
50 70

45 60
40
50
35
30 40
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24
Source: S&P Global PMI. Source: S&P Global PMI.

Survey methodology
The S&P Global Brazil Services PMI® is compiled by S&P Global from responses to
Contact
questionnaires sent to a panel of around 400 service sector companies. The sectors
covered include consumer (excluding retail), transport, information, communication, Pollyanna De Lima Katherine Smith
finance, insurance, real estate and business services. The panel is stratified by detailed Economics Associate Director Corporate Communications
sector and company workforce size, based on contributions to GDP. Data collection began S&P Global Market Intelligence S&P Global Market Intelligence
in March 2007. T: +44-1491-461-075 T: +1 (781) 301-9311
Survey responses are collected in the second half of each month and indicate the direction pollyanna.delima@spglobal.com katherine.smith@spglobal.com
of change compared to the previous month. A diffusion index is calculated for each
survey variable. The index is the sum of the percentage of ‘higher’ responses and half the
percentage of ‘unchanged’ responses. The indices vary between 0 and 100, with a reading If you prefer not to receive news releases from S&P Global, please email katherine.smith@
above 50 indicating an overall increase compared to the previous month, and below 50 an spglobal.com. To read our privacy policy, click here.
overall decrease. The indices are then seasonally adjusted.
The headline figure is the Services Business Activity Index. This is a diffusion index
calculated from a question that asks for changes in the volume of business activity
compared with one month previously. The Services Business Activity Index is comparable
to the Manufacturing Output Index. It may be referred to as the ‘Services PMI’ but is not
comparable with the headline manufacturing PMI figure.
The Composite Output Index is a weighted average of the Manufacturing Output Index
and the Services Business Activity Index. The weights reflect the relative size of the
manufacturing and service sectors according to official GDP data. The Composite Output
Index may be referred to as the ‘Composite PMI’ but is not comparable with the headline
manufacturing PMI figure.
Underlying survey data are not revised after publication, but seasonal adjustment factors
may be revised from time to time as appropriate which will affect the seasonally adjusted
data series.
For further information on the PMI survey methodology, please contact economics@
spglobal.com.

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®
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