Brazil economy: Service sector remains stable as industrial revenue falls

Brazil's service sector remained stable in July, showing 0% variation from June. According to IBGE data, the sector has grown 1.9% year-to-date and 2.4% over the last 12 months. Tourism activities within the sector expanded by 2.7% in July compared to June, though they remain 3.8% below the December 2024 peak.

In contrast, the manufacturing industry faced a downturn. Data from the CNI indicates that industrial revenue fell by 2% in July compared to June. This decline is attributed to high interest rates and reduced consumer demand. While employment in the industry saw a slight monthly increase of 0.2%, it has decreased by 0.6% over the last year.

Regional industrial production also showed mixed results, with declines in 11 of 18 surveyed locations, including a 2.7% drop in São Paulo. Meanwhile, the Jundiaí industrial cluster reported a record trade flow of US$ 8.65 billion from January to August, driven by high-tech electronic component imports and re-exports.