Brazil services confidence in May surges to pre-pandemic high
- The Getulio Vargas Foundation's (FGV) services sector confidence index rose 6.4 points to 88.1 points in May, the second consecutive rise and the highest since the pre-pandemic levels of February last year.
- "An expanded vaccination program will extend the recovery in a sector that was hit hard during the pandemic," he said.
BRASILIA: Brazilian services sector confidence jumped in May to its highest in over a year, a survey showed on Monday, as the easing of lockdown measures and increased COVID-19 vaccinations boosted optimism that businesses are emerging from the second wave of the pandemic.
The Getulio Vargas Foundation's (FGV) services sector confidence index rose 6.4 points to 88.1 points in May, the second consecutive rise and the highest since the pre-pandemic levels of February last year.
"The positive result... indicate an increase in demand for services after a period of stricter restrictions between March and April," said FGV economist Rodolpho Tobler.
"An expanded vaccination program will extend the recovery in a sector that was hit hard during the pandemic," he said.
Services account for around 70% of all economic activity in Brazil. A recovery in the sector will be crucial to sustaining wider economic growth.
The current conditions index jumped 9.2 points to 84.0, the highest since March last year, and the expectations index rose 3.7 points to 92.4, the highest since October, FGV said.
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