(MENAFN- The Rio Times) Brazil's service economy-the bulk of national output-reached a new high in August, even as the pace cooled.

Official data show services up 0.1% from July and 2.5% from a year earlier, marking a seventh straight monthly gain.

Activity now sits about 18.7% above its pre-pandemic level, a reminder that services have carried Brazil's recovery-but the latest step up was a small one.

The story in the weeds explains the headline. Four of five major groups grew on the month: professional and administrative services, household-facing activities, transport and logistics, and a miscellaneous“other services” bucket.

Information and communication slipped, erasing July's advance and trimming the overall result.

Regionally, 17 of 27 states expanded, but São Paulo-the country's growth anchor-fell 1.0% on the month, offsetting gains in Rio de Janeiro, which rose 1.3%.

Taken together, January–August services are up 2.6%, and the rolling 12-month rate has nudged to 3.1% from 3.0%.

Why this matters beyond Brazil's borders: services set the tone for jobs, prices, and corporate earnings across Latin America's largest economy.


Brazil's Services Set a Record in August Even as Momentum Eases
A record level with softer monthly momentum signals resilience without overheating.

That mix tends to support steadier inflation dynamics and a more predictable path for borrowing costs-key for multinationals planning investment, for commodity shippers counting on Brazilian logistics, and for global investors gauging domestic demand.

The story behind the story is balance. Households and firms are still spending and hiring enough to push services to fresh highs, but they are doing so cautiously.

A dip in information and communication-often a bellwether for digital advertising, media, and enterprise tech-and a monthly setback in São Paulo suggest selective softness inside an otherwise firm trend.

That nuance matters for anyone reading Brazil as a proxy for broader emerging-market demand: growth is intact, just more measured.

MENAFN15102025007421016031ID1110198257