SAO PAULO, Oct 3 (Reuters) - Activity in Brazil's service sector rebounded in September, a closely watched business survey showed on Thursday, further evidence that Brazil's economy may have avoided a contraction in the third quarter.
HSBC's Purchasing Managers Index for Brazilian services rose to 50.7 in September from 49.7 in August on a seasonally adjusted basis.
A reading above 50 indicates expansion. The recovery in services activity in September supported output in Brazil's private sector as a whole.
HSBC's Composite Output Index for the country, which includes both services and manufacturing activity, also edged up to 50.7 in September, compared to 49.7 in August.
A sharp contraction in industrial output in July and a surprise decline in services activity in August had led some economists to forecast a slight contraction in Brazil's economic growth in the third quarter - halting its gradual recovery after nearly falling into recession in late 2011.
Even if Brazil avoids a contraction, the PMI data confirms expectations that growth was very weak. The quarterly average of the services PMI index stood at 50.2, the second lowest reading since the 2009 global crisis.
"After a relatively strong start in January-February when the index averaged 53.3, the expansion rate of economic activity slowed down to almost a trickle," wrote Andre Loes, HSBC's chief Brazil economist, in a research note.
Increasing activity boosted employment in the services sector at the fastest pace in three months. Inflation also eased slightly from August, according to the HSBC report.
yahoo.com
HSBC's Purchasing Managers Index for Brazilian services rose to 50.7 in September from 49.7 in August on a seasonally adjusted basis.
A reading above 50 indicates expansion. The recovery in services activity in September supported output in Brazil's private sector as a whole.
HSBC's Composite Output Index for the country, which includes both services and manufacturing activity, also edged up to 50.7 in September, compared to 49.7 in August.
A sharp contraction in industrial output in July and a surprise decline in services activity in August had led some economists to forecast a slight contraction in Brazil's economic growth in the third quarter - halting its gradual recovery after nearly falling into recession in late 2011.
Even if Brazil avoids a contraction, the PMI data confirms expectations that growth was very weak. The quarterly average of the services PMI index stood at 50.2, the second lowest reading since the 2009 global crisis.
"After a relatively strong start in January-February when the index averaged 53.3, the expansion rate of economic activity slowed down to almost a trickle," wrote Andre Loes, HSBC's chief Brazil economist, in a research note.
Increasing activity boosted employment in the services sector at the fastest pace in three months. Inflation also eased slightly from August, according to the HSBC report.
yahoo.com
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