Brazil Private Sectors Returns to Contraction

The S&P Global Composite PMI for Brazil fell to 49.5 in May 2026 from 52.4 in April, indicating a renewed contraction after a solid expansion in the previous month. The downturn was driven by a sharp decline in manufacturing, while services activity growth slowed markedly to near stagnation. A moderate drop in total new orders constrained job creation, with employment growth easing to its weakest pace over the current four-month expansion period. Meanwhile, cost pressures were among the highest in four years, largely concentrated in manufacturing. Likewise, charge inflation stood at its second-highest level since July 2022.

The S&P Global Composite PMI for Brazil climbed to 52.4 in April 2026 from 49.9 in the prior month, indicating a renewed expansion in the country's private sector. Although modest, the expansion was the strongest since March 2025, as both the manufacturing and services sectors expanded. Private sector sales rebounded in April, led by services. Employment increased for the third month, with the rate of job growth reaching the highest since March 20255. However, cost pressures strengthened. Input prices rose at the sharpest rate since mid-2022 and output prices accelerated to a near four-year high.

The S&P Global Composite PMI for Brazil fell to 49.9 in March 2026 from 51.3 in the prior month, indicating broadly stagnant activity. The dominant services sector barely grew, while manufacturing continued to contract, albeit at a slower pace. New orders declined, following a small uptick in February, amid strained household finances and deteriorating economic conditions. Meanwhile, employment increased slightly. On the price front, inflationary pressures intensified in the wake of the Middle East crisis. Input cost inflation jumped sharply, reaching its highest level since April 2025. Prices for goods and services rose at the fastest pace since February 2025.