Brazil Private Sector Contracts in July

2026-08-05 13:21 By Luisa Carvalho 1 min. read

The S&P Global Composite PMI for Brazil fell to 48.8 in July 2026 from 50.7 in June, signaling a renewed contraction in private sector activity.

Although modest, the pace of reduction was the fastest since October 2025, reflecting a sharper decline in new orders and weaker output, particularly in manufacturing.

Firms continued to trim workforce in response to weak demand, marking a second consecutive monthly decrease in employment.

Input cost and output price inflation both eased to their lowest levels in four months but stayed high by historical standards.

Cost pressures were stronger in services, while manufacturers raised selling prices more aggressively.



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Brazil Private Sector Contracts in July
The S&P Global Composite PMI for Brazil fell to 48.8 in July 2026 from 50.7 in June, signaling a renewed contraction in private sector activity. Although modest, the pace of reduction was the fastest since October 2025, reflecting a sharper decline in new orders and weaker output, particularly in manufacturing. Firms continued to trim workforce in response to weak demand, marking a second consecutive monthly decrease in employment. Input cost and output price inflation both eased to their lowest levels in four months but stayed high by historical standards. Cost pressures were stronger in services, while manufacturers raised selling prices more aggressively.
2026-08-05
Brazil Private Sector Rebounds in June
The S&P Global Composite PMI for Brazil rose to 50.7 in June 2026 from 49.5 in May, pointing to a mild recovery in private sector activity. The upturn was driven by services, while manufacturing recorded a softer decline in output. Aggregate new orders increased, driven by stronger demand for services, with World Cup-related spending providing a significant boost. Meanwhile, new orders received by manufacturers continued to fall but at a slower pace. Employment declined for the first time in five months as services firms reduced staffing despite hiring in manufacturing. Overall price pressures eased to a three-month low, but business optimism softened.
2026-07-03
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.
2026-06-03