Brazil: Services Output Shrinks Less Than Expected.

Brazil’s services output fell 0.1% month-on-month in September 2026, following a flat reading in August, above market expectations of a 0.3% decline. Despite the contraction, activity remained 19.8% above its pre-pandemic level and just 0.4% below its record high reached in October 2025. A further contraction in transportation services (-0.5% vs -0.1%) led the decline, reflecting lower revenues from road and rail freight, air passenger transport and logistics. Information and communication services also fell 0.5% after a 0.1% decrease, dragged down by weaker revenues in IT services and film exhibition. In contrast, professional, administrative and complementary services grew 0.5% after 0.2% gain, while other services advanced 1.0%, rebounding from a 1.4% contraction. On an annual basis, services output declined 0.1%, following a 0.6% increase in August, ending a 29-month streak of consecutive growth.