In June, FGV IBRE’s Services Confidence Index went up 0.4 percentage points to 98.7, the highest level since October 2021, when it reached 99.1. In terms of the three-month moving average, the index rose 2.2 points, continuing its upward trend.

“The confidence of business people in the services sector rose in the second quarter, but at a slower pace than in recent months, and it was concentrated in certain segments. The positive result in June was influenced by an improvement in expectations for the coming months, while perceptions of the present moment remained unchanged from the previous month. In both time horizons, there was a move toward the neutral level of 100 points, but caution is still needed. The unfavorable macroeconomic environment and uncertainty regarding the next few months may hold back the pace of recovery in the sector’s confidence,” says FGV IBRE economist Rodolpho Tobler.

This month’s rise in the Services Confidence Index was focused on five of the 13 surveyed segments and influenced by prospects for the coming months. The Expectations Index went up 0.8 points, to 99.3, the highest level since November 2021 (100.9). The Current Situation Index was unchanged from the previous month (98.1). 

Quarterly result

Because of June’s positive result, service sector confidence in terms of the three-month moving average increased between the first and second quarters of 2022. The increase this quarter was spread across segments and driven by those that are more intense in terms of in-person services, as a result of the easing of the pandemic and the reopening of establishments. “The challenge for the coming quarters is to maintain this positive result, once the effect of the reopening and the extraordinary release of funds this quarter wears off,” Tobler adds.

For more information, click here.