Brazil's May services dip 0.4% as retail sales rise 0.1%

The IBGE's May 2026 Monthly Services Survey showed Brazil's services volume fell 0.4% month‑on‑month, ending the previous 1.1% gain. The decline was led by the transport group, which dropped 1% and accounts for about one‑third of the index. Other sectors such as professional services and family‑oriented services posted modest gains, while “other services” fell 1.9%. Year‑on‑year the services sector grew 0.4% and 2.6% over the past 12 months, remaining 19.6% above pre‑pandemic levels. The tourism activity index also slipped 0.4% month‑on‑month but is up 1.7% year‑to‑date.

In the same period, the IBGE's Monthly Commerce Survey reported retail sales volume increased 0.1% from April to May after a 1.6% drop in March‑April. Growth was driven by books, paper, clothing, furniture, pharmaceuticals and fuels, while equipment, office supplies and supermarkets posted declines. Nominal retail revenue rose 0.1% month‑on‑month and 4.4% year‑on‑year, with a 1.7% gain for the year overall. The expanded retail sector, which includes construction materials and vehicle parts, fell 0.2%.

Both surveys indicate mixed signals for Brazil's economy, with a slowdown in services—especially transport—while consumer retail activity shows modest resilience.