FX.co ★ Brazil Services Output Shrinks Less Than Expected

Brazil’s services output slipped 0.1% month-on-month in September 2026, after remaining flat in August, but the drop was smaller than the market’s expected 0.3% decline. Despite this setback, sector activity stayed 19.8% above its pre-pandemic level and only 0.4% below the record high reached in October 2025.

The overall decline was driven primarily by a deeper contraction in transportation services (-0.5% vs. -0.1% in August), reflecting lower revenues from road and rail freight, air passenger transport, and logistics. Information and communication services also fell 0.5%, following a 0.1% decrease in the previous month, weighed down by weaker revenues in IT services and film exhibition.

These losses were partially offset by gains in other segments. Professional, administrative and complementary services expanded 0.5%, accelerating from a 0.2% rise in August, while the “other services” category advanced 1.0%, rebounding from a 1.4% contraction in the prior month.

On a year-on-year basis, services output edged down 0.1% in September, after a 0.6% increase in August, bringing an end to a 29-month streak of uninterrupted growth.