SAO PAULO, May 15 (Reuters) – Brazil’s services activity fell more than expected in March compared with the previous month, data from the statistics agency IBGE showed on Friday, with transportation the main drag.
• Services activity in Latin America’s largest economy declined 1.2% in March from February, IBGE said
• Economists in a Reuters poll had expected a 0.1% drop
• All five groups surveyed contracted in March, IBGE said, with transportation posting the steepest decline
• Persistent price pressures in the sector remain a concern for Brazil’s central bank
• The central bank last month cut its benchmark interest rate by 25 basis points for a second straight meeting to 14.50%
• Services output rose 3.0% year-on-year, also well below expectations of a 4.5% increase
• Data suggest an adjustment in activity at lower levels, reflecting the lagged effects of restrictive monetary policy, but also a moderation of strong growth, says Suno Research economist Rafael Perez
(Reporting by Isabel Teles; Editing by Chizu Nomiyama )
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