Brazil Services Growth Improves On World Cup Boost

(RTTNews) - The Brazilian service sector growth accelerated somewhat in June as World Cup-related viewing events, hospitality spending, and media activity helped support demand, survey results published by S&P Global showed on Friday.

The seasonally adjusted S&P Global Brazil Services Business Activity Index rose to 51.3 in June from 50.4 in May. A score above 50 indicates expansion.

"But with Brazilian services firms mostly linking June's upturn to a World Cup boost, the recovery looks likely to be short-lived," Pollyanna De Lima, economics associate director at S&P Global Market Intelligence, said.

New order intakes rose slightly in June, and the growth was seen in transport, information and communication, and consumer-related services. On the other hand, contractions were seen across finance and insurance and real estate and business services.

On the price front, input prices and selling charges increase at stronger rates in June. Finance and insurance companies continued to record the sharpest rate of output charge inflation.

After a four-month sequence of job creation, employment across Brazil's service economy decreased in June.

The composite output index rose to 50.7 in June from 49.5 in May, indicating a renewed and marginal uptick in the Brazilian private sector output.