SME Revenue Grows 13% in July, Starting the Third Quarter on a High Note

The Omie Index of Economic Performance of SMEs (IODE-SMEs) revealed a 13% growth in the average financial movement of Brazilian small and medium-sized enterprises (SMEs) in July 2024, in comparison to the same period of the previous year. In the year-to-date, the index shows an increase of 5,6% compared to the same period in 2023. This growth was observed in a disseminated way among the major sectors of the economy., with an emphasis on Industry and Trade

Sector Performance:

• Business: The trade sector recorded an increase of 19,4% in turnover in July, reversing the fall of 11,8% observed in the same period of 2023. Growth was driven by wholesale (+24,2% YoY) and the recovery of retail SMEs (+9,1%)
• Industry: SMEs in Industry showed an increase of 18,5% of turnover, maintaining the positive trend observed throughout the year. Performance was supported by activities such as ‘Printing and reproduction of recordings ⁇, ⁇ Manufacture of furniture ⁇, "Manufacture of cellulose, paper and paper products ⁇ and ⁇ Manufacturing of machinery and equipment ⁇
• Services: The Services sector showed a good performance in July (+6,2% YoY, after a fall of 1,7% in the previous month. The growth was driven by segments such as ‘Delivery activities ⁇, "Veterinary activities", ‘Advertising and market research ⁇ and ‘Accommodation and food ⁇
• Infrastructure: SMEs in the Infrastructure sector recorded a growth of 8,6% in July, after two consecutive months of fall. The segments ⁇ Specialised construction services ⁇ and ⁇ Collection, waste treatment and disposal were the main contributors to the positive performance

Felipe Beraldi, economist and manager of Indicators and Economic Studies at Omie, explained that part of the growth is due to the "calendar effect", Since July 2024 had 23 working days, against 21 in the same month of 2023. For various segments of the SME market, This results in a more robust monthly turnover, making the comparison unbalanced., commented Beraldi

For a more precise analysis, the average daily turnover of accounts receivable of SMEs was considered, which pointed to an expansion of 3,2% compared to the same period last year, although in a more limited way than the comparison between the full months measured by IODE-SMEs

Beraldi stressed that the market warming can be attributed to fundamentals of the domestic economy, as the robustness of the labour market, with unemployment below 7% and an increase in the average real income of workers, supporting consumption. Furthermore, the easing of monetary policy, With Selic down since August last year., also contributed to the positive result

The growth in SME turnover at the beginning of the third quarter confirms the outlook for continued growth in the sector during the second half of 2024, Beraldi concluded

The IODE-SMEs, which works as an economic thermometer of companies with revenues of up to R$ 50 million per year, is divided into 701 economic activities within the sectors of Trade, Industry, Infrastructure and Services, providing a comprehensive and detailed overview of the performance of SMEs in Brazil