Brazil services activity rises in line with forecasts in July

SAO PAULO, Sept 12 (Reuters) - Services activity in Brazil grew in line with expectations in July, marking a sixth consecutive monthly expansion despite a tight monetary scenario, data from the national statistics agency, IBGE, showed on Friday.

The main driver of Latin America's largest economy rose 0.3% in July from the previous month, with activity reaching its busiest ever.

On an annual basis, services output grew 2.8%, slightly above the 2.6% median forecast in a Reuters poll of economists.

Three out of the five activities surveyed posted gains in July, with the strongest contribution coming from the information and communication sector, which grew 1%, according to IBGE.

Transportation recorded the sharpest decline, falling 0.6%, partly due to higher ticket prices, IBGE's research manager Rodrigo Lobo said in the report.

The data highlights a growing divergence between the resilient, income-driven services sector and the weaker, credit-dependent goods sector, and comes after a report earlier this week showed a fourth-consecutive monthly decline in retail sales.

The services growth "does not meaningfully alter the outlook for economic deceleration," analysts at J.P. Morgan said in a note to clients.

Despite a recent report showing the first negative monthly inflation reading in a year, persistent price pressures within the services sector remain a key concern for Brazil's central bank.

Policymakers are scheduled to meet next week, with markets widely expecting them to hold the benchmark Selic interest rate at 15%, a nearly two-decade high.