Brazil Private Sector Growth Resumes

The S&P Global Composite PMI for Brazil rose to 51.3 in February 2026 from 49.9 in the prior month, pointing to renewed growth in the country's private sector. The services sector (PMI at 53.1 vs 51.3 in January) carried the expansion alone, as factory production contracted sharply during the month. Private sector new business rebounded, supported by firm services demand that outweighed reduced goods sales. Job growth resumed across sectors, led by services. While cost inflation eased to one of the lowest levels in two years, firms raised output prices at the quickest rate since July.

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.