Confidence in the service sector in Brazil started 2023 at the lowest level in almost a year, given the greater pessimism in relation to the coming months and the loss of breath in current demand, showed data released this Monday (30) by the Getulio Foundation. Vargas (FGV).
In the month, the Services Confidence Index (ICS) fell 2.7 points and reached 89.5 points, marking the lowest level since February 2022 (89.2 points) and the fourth consecutive month of decline.
“Confidence in services starts 2023 maintaining the deceleration trend that began in October 2022”, explained FGV Ibre economist Rodolpho Tobler in a note.
The Current Situation Index (ISA-S), an indicator of the perception of the current situation in the services sector, lost 0.7 points to 93.6 points, the lowest level since March 2022 (90.9 points).
The Expectations Index (EI-S), which reflects the outlook for the coming months, dropped by 4.6 points to 85.5 points, the lowest level since March 2021 (81.3 points).
“The scenario for the coming months does not seem to be easily reversed given that the macroeconomic issues involved in this slowdown are likely to remain for some time. The caution of entrepreneurs is perceived in their projections for the short term with a drop in expected demand, hiring and the trend of business for the next six months”, completed Tobler.
Source: CNN Brasil
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