By Ovunc Kutlu
ISTANBUL (AA) - Brazil's business activity expanded at its highest rate in 22 months, according to global data provider S&P Global on Wednesday.
The Services Business Activity Index increased 1.6 points to 55.3 in May, up from 53.7 in April, which marked "the strongest rate of expansion since July 2022," it said in a report.
A reading above 50 indicates expansion and below 50 shows contraction.
Growth across the South American country's service sector strengthened in May, propelled by strong demand, according to the report.
"Amid reports of ongoing increases in new business and upbeat expectations for output in the medium-term, there was another round of job creation across Brazil's service economy in May," it said. "Employment expanded solidly and at the joint-fastest rate since October 2022."
There was, however, a sharp increase in operating expenses and input prices, due to upward pressure from fuel, material, rent and wage costs.
Pollyanna De Lima, economics associate director at S&P Global Market Intelligence, said service economy showed a substantial pace of growth at a time when the manufacturing industry was particularly affected by floods in Rio Grande do Sul.
"Across the private sector, the rise in employment was the best in over a year-and-a-half," she said. "It's encouraging to see companies' willingness to recruit in spite of sharply rising input prices."