UPDATE 1-Brazil services activity rises for the seventh consecutive month in August

(Rewrites lead, adds details and context throughout) SAO PAULO, Oct 14 (Reuters) – Services activity in Brazil posted its seventh consecutive monthly expansion despite a tight monetary scenario, data from the national statistics agency, IBGE, showed on Tuesday. The main driver of Latin America's largest economy rose 0.1% in August from the previous month, in line with economists' expectations in a Reuters poll. On an annual basis, services output grew 2.5%. The data highlighted a growing divergence between the resilient, income-driven services sector and the weaker, credit-dependent goods sector, as Brazil's retail sales data continue to decline in recent months. Four out of the five activities surveyed posted gains during the eighth month of the year, with a key contribution coming from professional, administrative and complementary services, which grew 0.4%, according to IBGE. On the negative side, information and communication services fell 0.5%. "Despite the decline in information and communication services this month, information technology services was the one that most influenced the 2.6% increase recorded over the last seven months," research manager Rodrigo Lobo said in the report. "It has seen a notable increase in productivity since the post-pandemic period and continues to grow steadily, renewing its peak in August," he added. Regarding the service sector, persistent price pressures remain a key concern for Brazil's central bank. Last month, the institution kept the benchmark Selic interest rate at 15%, a nearly two-decade high, adding they expect to leave rates at the current level for a long period. (Reporting by Fernando Cardoso; Editing by Aida Pelaez-Fernandez)

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