Confidence in the service sector has increased in Brazil

The month of July had the highest increase in the confidence index for the services sector in Brazil since September 2013. The Services Confidence Index (ICS) surpassed the neutrality score, generating an increase in expectations in this market.

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According to specialist Alberto Ajzental, who is an economist and professor at FGV, confidence indices measure expectations, humor and enthusiasm, because even when dealing with the economy, it is people who move the sector, and people are moved by emotions. He also adds that behavior is fundamental to the economy.

The sector's expectations are directly linked to investment, which is driven by the idea of ​​a positive return. However, the customer's decision has a direct impact on the margin of confidence, as the final result demonstrates where he places his confidence in consumption. If confidence is positive, which is true, this allows for investment and spending in the sector. The service is intangible and perishable, since it depends on the moment in which it is offered.

The prospect of growth remains active with the decrease in social isolation, as there is a relationship between the waves of Covid-19 and the negative index of the sector. This correlation is analyzed from the perspective that, with social withdrawal, part of the services are no longer offered, generating a drop, since 70% of the Brazilian GDP is made up of the services.

Confidence in the sector comes from entrepreneurs who understand that the scenario is promising and positive, thus directly impacting the creation of formal vacancies. This is because the idea of ​​measuring perception and mood is part of the future of the economy being action today.

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