SAO PAULO (Reuters) – Services activity in Brazil fell more than expected in November, statistics agency IBGE said on Wednesday, the latest in a series of data indicating that the local economy might be cooling amid tight financial conditions.
Service sector activity, the main engine of Brazil’s economy, slipped 0.9% in November from the previous month, IBGE said, the biggest monthly drop since April 2023.
Economists polled by Reuters had expected a 0.3% fall.
The sector’s positive performance throughout 2024 helped Brazil’s gross domestic product (GDP) surprise on the upside last year, but elevated borrowing costs are