Industry, Retail and Services Decline in the Third Quarter

The Brazilian economy showed negative performance across its three main sectors during the third quarter. The Brazilian Institute of Geography and Statistics recorded declines in industry, retail and the services sector compared to the previous quarter.

The industrial sector posted the most unfavorable result during the period. The accumulated contraction for the quarter reached 2.2%. Industrial production ended September with five consecutive months of no growth, pressured mainly by the manufacturing industry.

The volume of services provided in the country also fell by 0.1% in the quarter. The IBGE classified this variation as statistical stability. The services sector makes up a relevant portion of the national Gross Domestic Product calculation.

Retail, in both the restricted and extended concepts, recorded a 0.3% drop in the quarter. Although trade showed a slight growth of 0.2% in the month of September alone, the consolidated result for the July to September period remained in negative territory.

The official Gross Domestic Product performance for the third quarter will be released by the institute on December 2. The current sectoral data serves as a thermometer for economic activity before the publication of the National Accounts.