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The Service Confidence Index (CSI) rose 0.8 points from June to July, to 87.5 points, in the seasonally adjusted series, Fundavalo Getulio Vargas (FGV) reported Monday. . The result interrupts a sequence of four consecutive falls.
"The response to the confidence of the service sector in July was not enough to offset the loss of June." In reading companies about the current situation, there was a recovery, and the perception of the next few months kept the trajectory negative. , the beginning of the second half shows that companies are looking for a recovery scenario still very tame, which should be linked to the current poor performance and the great uncertainty related to the electoral process, "explains Silvio Sales, consultant at the Brazilian Institute of Economics. FGV (Ibre / FGV), in an official note.
Nine of the 13 major activities recorded improved. The current situation index (ISA-S) rose 1.6 points, bringing the June decline to 86.7 points. The Expectations Index (IE-S) edged down 0.1 point to 88.6 points, its lowest level since December 2016.
At ISA-S, the highest contribution to the highest July was the item that gauges the current situation of the company, which has advanced 2.7 points to 88.1 points, recovering losses in May and June. In IE-S, the component that measures demand for the next three months is the one that determined July's drop, down 2.6 points to 87.9 points, the lowest level since September 2017. [19659002] "The stagnation of the labor market and the cautiousness of families and businesses in their consumption and investment decisions follow the economic recovery and are particularly important for the service sector, which depends mainly on demand. In July, there is a predominance of corporate caution regarding the expectations of the recovery of the service sector in the country's current scenario, "Sales added.
In July, the proportion of companies forecasting an increase in demand over the next three months increased from 33.4% to 32.2%, but also from those predicting a decline in demand, from 12.3% to 11.5% of the total. The result expands the proportion of companies that perceive a still low demand stability, according to the FGV.
The utilization level of the services sector's installed capacity (NUCI) increased by 0.6 percentage point in July to 81.7% after reaching the lowest level. historical series level in June, at 81.1%. The data collection for the July issue of the Services Survey was conducted between the 2nd and the 25th of the month
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