Service sector confidence in Brazil falls in December, reaching its lowest level in six months.
Brazil's Services Confidence Index (ICS) fell for the third consecutive month in December, reaching its lowest level since last June, the Getulio Vargas Foundation reported on Tuesday. The ICS dropped 1,8 points in December to 75,7 points, after a 1,4-point loss in the previous month, accumulating losses of 4,9 points since September. The most notable decline was in the Expectations Index (IE-S), which fell 2,9 points to 81,6 points, while the Current Situation Index (ISA-S) fell 0,7 points to 70,2 points during the period.
SAO PAULO (Reuters) - Brazil's Services Confidence Index (ICS) fell for the third straight month in December, to its lowest level since last June, the Getulio Vargas Foundation (FGV) reported on Tuesday.
The ICS fell 1,8 points in December to 75,7 points, after a loss of 1,4 points in the previous month, accumulating losses of 4,9 points since September.
The highlight of the result was the Expectations Index (IE-S), which fell 2,9 points to 81,6 points, while the Current Situation Index (ISA-S) dropped 0,7 points to 70,2 points during the period.
"The message from the year-end service sector survey figures is that the sector is expected to continue its weak performance at the start of 2017," said FGV/IBRE consultant Silvio Sales in a statement.
According to FGV, "throughout the year, companies' assessments of the current situation remained at very low levels, based on a more realistic perception of business evolution. The downward adjustment of expectations suggests that the sector will take longer than previously anticipated to return to growth."
The service sector is yet another to show a decline in confidence in December, following consumer spending, construction, and manufacturing.
(By Thaís Freitas)