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Confidence in services drops 1.5 points in December compared to November, reveals FGV

The Services Confidence Index (ICS) fell 1.5 points from November to December, in the seasonally adjusted series, to 92.2 points, informed this Thursday, 29, the Getulio Vargas Foundation (FGV). It was the third straight month of decline, registering a loss of 9.5 points in the fourth quarter. With that, the ICS reached the lowest level since February 2021, when it stood at 89.2 points. In quarterly moving averages, the index fell by 3.2 points.

According to the FGV, the ICS ended the year returning the gains verified in the second and third quarters.

“The deterioration in the month was influenced by the perception of a slowdown in the pace of services and the worsening of the outlook for the coming months. In addition, the spread between the segments confirms this more negative moment and suggests a deceleration of activity that tends to extend into the beginning of next year”, says the note released by the FGV.

The decline in confidence in December was driven both by the worsening perception of current business performance and by the prospects for the coming months.

The Current Situation Index (ISA-CST) dropped 2.6 points to 94.3 points, the lowest level since last March, when it stood at 90.9 points.

“This result was influenced both by the worsening of the indicator that measures the volume of current demand, which fell by 2.8 points, to 93.8 points, and the indicator of the current situation of business, which fell by 2.3 points, to 94.8 points. points”, says the note from the FGV.

The Expectations Index (EI-S) fell by 0.6 points to 90.1 points, the lowest level since April 2021, when it stood at 88.7 points. “The two components of the index also fell: the indicator that measures forecast demand in the next three months changed -0.3 points, to 91.2 points, and the indicator of business trends in the next six months decreased by 0.8 points, to 89.2 points”, says the FGV note.

The December Services Survey collected information from 1,506 companies between the 1st and 27th of the month.

Source: CNN Brasil

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