The Omie Index of Economic Performance of SMEs (IODE-SMEs) indicates an 11.9% increase in the financial transactions of small and medium-sized enterprises (SMEs) in Brazil in September 2024, compared to the same period of the previous year. In the year-to-date, the index shows an increase of 5.8% compared to the same period in 2023.
Figure 1: IODE-SMEs
(Index number – base: average 2021=100)
Fonte: IODE-PMEs (Omie)
IODE-PMEs works as an economic thermometer for companies with annual revenues of up to R$50 million, divided into 701 economic activities that make up four major sectors: Commerce, Industry, Infrastructure and Services.
Felipe Beraldi, economist and manager of Indicators and Economic Studies at Omie, a cloud management (ERP) platform, indicates that the rise of SMEs in September was spread across sectors. "The maintenance of positive signals in the Brazilian macroeconomic environment from the perspective of the labor market and household income continues to boost the performance of SMEs, while consumer confidence, measured by the FGV indicator (ICC-FGV), has been rising recently, reinforcing the positive context for consumption," he explains.
The highlight was the Commerce sector, which recorded a 19.2% increase in September compared to the previous year – one of the best results for the segment in 2024 so far. The consistent recovery in recent months, both wholesale and retail, suggests a promising end of the year for the SMEs in the sector. This context raises expectations for the impact of seasonal dates, such as theBlack Friday, in companies’ revenue in the coming months”, explains the economist.
The industrial SMEs returned to positive territory in September, after a temporary decline in the previous month, recording an 11.8% increase compared to the previous year. Among the 22 monitored subsegments of the manufacturing industry, 18 showed an increase in revenue, with the activities of 'Furniture manufacturing', 'Metal product manufacturing', and 'Pulp and paper manufacturing' being the most prominent.
In the Services sector, SMEs advanced by 7.3% in September, with it being important to highlight the high comparison base of 2023 due to the recovery the sector was already experiencing at that time. This month, performance was driven by improvements in 'Administrative activities' and 'Delivery activities'.
Finally, SMEs in the Infrastructure sector recorded an 11.3% increase in real financial transactions in September. The 'Electricity' and 'Specialized construction services' segments predominated in the sector's growth throughout the third quarter.
The positive result in the last month contributes to the positive maintenance of Brazilian SMEs' revenue in the short term. "Even with the prospects of increased inflationary pressures and interest rates, factors such as rising consumer confidence and the persistence of unemployment rates at historically low levels are expected to support the continued growth of SMEs in the coming months," predicts Beraldi.
