Brazil Private Sector Activity Returns to Growth

The S&P Global Brazil Composite PMI fell to 49.9 in January 2026 from 52.1 in December, signaling broadly stagnant private-sector activity at the start of the year. While services output continued to expand, growth slowed sharply and failed to offset a deeper contraction in manufacturing production. New orders edged lower and employment declined for the first time in three months, with modest job losses across both services and industry. Meanwhile, input costs and output prices rose at the fastest pace in two months.

The S&P Global Composite PMI for Brazil rose to 52.1 in December 2025 from 49.6 in November, signaling the first expansion in private sector output for nine months. The latest reading was consistent with a moderate rate of growth in the country's private sector that was above its long-run average, solely driven by services (PMI at 53.7 vs 50.1 in November). Meanwhile, manufacturing activity (PMI at 47.6 vs 48.8) remained in solid contraction, marking a eighth consecutive month of decline. New orders increased for a second month, led by services. On the price front, input costs and selling prices increased at their slowest rates in 22 and three months, respectively.

The S&P Global Composite PMI for Brazil rose to 49.6 in November 2025 from 48.2 in October, signaling a marginal contraction that was the softest in the current eight-month sequence of reduction. The latest reading reflected a modest improvement in manufacturing where the PMI rose to 48.8 in November from 48.2 in October, while services returned to growth with the Services PMI at 50.1 in November versus 47.7 in October. New business intakes moved back into expansion and at the composite level total sales rose for the first time in eight months. Private sector employment registered a marginal expansion as manufacturing and services both contributed to job growth. Input cost inflation picked up and reached a recent high, while the rate of increase in selling prices eased, with price pressures remaining more marked in the service economy.