Brazil Private Sector Activity Shrinks for 2nd Month

2026-09-03 13:29 By Luisa Carvalho 1 min. read

The S&P Global Composite PMI for Brazil rose to 49.1 in August 2026 from 48.8 in July.

Although the figure pointed to a second successive contraction in private-sector activity, the downturn was less severe than in the prior month.

The weakness was mainly concentrated in the manufacturing sector, while services activity showed signs of stabilisation.

Manufacturers recorded a sharp decline in new orders, whereas demand among service providers was broadly unchanged.

Overall sales continued to fall, although less than in July.

Employment also remained under pressure, with manufacturers continuing to cut jobs while service providers kept payrolls broadly stable.

As a result, private-sector employment declined for a third consecutive month.

Meanwhile, inflationary pressures eased in August, with both input costs and output prices rising at slower rates.

However, price pressures remained historically elevated, particularly in the services sector.



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Brazil Private Sector Activity Shrinks for 2nd Month
The S&P Global Composite PMI for Brazil rose to 49.1 in August 2026 from 48.8 in July. Although the figure pointed to a second successive contraction in private-sector activity, the downturn was less severe than in the prior month. The weakness was mainly concentrated in the manufacturing sector, while services activity showed signs of stabilisation. Manufacturers recorded a sharp decline in new orders, whereas demand among service providers was broadly unchanged. Overall sales continued to fall, although less than in July. Employment also remained under pressure, with manufacturers continuing to cut jobs while service providers kept payrolls broadly stable. As a result, private-sector employment declined for a third consecutive month. Meanwhile, inflationary pressures eased in August, with both input costs and output prices rising at slower rates. However, price pressures remained historically elevated, particularly in the services sector.
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