Brazil’s services sector’s cost pressures reach 8-month high last month
(MENAFN) According to a report from S&P Global released on Wednesday, cost pressures in Brazil's services sector escalated significantly in June, reaching their highest levels in eight months. The report highlighted that service providers experienced a substantial rise in expenses, leading to accelerated inflation in charges.
The S&P Global PMI Brazil Services Business Activity Index registered at 54.8 in June, to mark the ninth consecutive month above the neutral mark of 50.0. This figure indicated continued expansion in the sector, although it showed a slight decline from May's index of 55.3.
Pollyanna De Lima, the Economics Associate Director at S&P Global Market Intelligence, expressed concerns over the accelerated increase in input costs reflected in the services PMI data. She pointed out that these developments could pose challenges for the Brazilian economy as well, particularly as policymakers at the central bank opted to halt the easing cycle by maintaining the policy rate unchanged at 10.5 percent in June.
The report underscored the significance of rising costs in the services sector, emphasizing potential implications for inflationary pressures and broader economic stability in Brazil. As policymakers monitor these trends closely, the data suggests a cautious outlook amidst ongoing economic uncertainties both domestically as well as globally.
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