Brazil Services Slide 1.2% in March as Transport Pulls Sector Lower

Overview

• IBGE, which released the data Friday, reported a 1.2% drop in services volume from February after a flat reading the month before.
• All five surveyed areas fell, led by transport down 1.7%, which erased gains from the first two months of the year.
• Analysts had expected only a 0.1% dip on the month, based on 24 forecasts compiled by Valor Data.
• Despite the setback, services volume rose 3.0% from a year earlier and nominal revenue increased 8.5% year over year, though revenue slipped 0.6% on the month.
• The sector remains 18.2% above its pre‑pandemic level and 1.7% below the October 2025 peak, a key backdrop for central bank watchers focused on services’ role in growth.