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06.11.201708:48:00UTC+00Brazil Service Sector Shrinks In October

Brazil's service sector returned to contraction in October driven by a fall in output and new work, the purchasing managers' survey data from IHS Markit showed Monday.

The IHS Markit Brazil Services PMI Business Activity Index dropped to 48.8 from 50.7 in September.

The drop largely reflected the subdued consumer confidence amid political and economic uncertainties, the survey said.

The Composite PMI, which combines manufacturing and services, declined to 49.5 from 51.1 in the previous month. The decrease came despite further expansion in manufacturing.

"Uncertainty among Brazilian consumers and businesses negatively impacted on the service sector in October, as evidenced by renewed declines in new work and dwindling sentiment," Pollyanna De Lima, principal economist at IHS Markit, said.

"The majority of panelists attributed these outcomes to subdued demand conditions alongside political and economic issues."



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