Brazil Manufacturing PMI Weakens in January

2026-02-02 13:15 By Isabela Couto 1 min. read

The S&P Global Brazil Manufacturing PMI fell to 47.0 in January 2026 from 47.6 in the previous month, marking the weakest conditions in four months.

Weaker demand led to another fall in new orders, including lower foreign sales.

Intermediate and investment goods producers saw sharp contractions, while consumer goods declined only marginally.

Capital goods was the only segment to report growth in new export orders.

Lower order inflows prompted a sharp cut in output, the second-steepest in over three and a half years.

Purchasing activity declined, while factory employment fell for a second month.

Input costs rose for the first time in three months, reflecting higher prices for foodstuffs, commodities, electronic components, metals and plastics.

Output prices edged up slightly.

Stocks of inputs and finished goods fell again.

Business confidence improved to its highest level since June 2025, supported by expectations of interest rate cuts, stronger demand and investment plans.



News Stream
Brazil Manufacturing PMI Weakens in January
The S&P Global Brazil Manufacturing PMI fell to 47.0 in January 2026 from 47.6 in the previous month, marking the weakest conditions in four months. Weaker demand led to another fall in new orders, including lower foreign sales. Intermediate and investment goods producers saw sharp contractions, while consumer goods declined only marginally. Capital goods was the only segment to report growth in new export orders. Lower order inflows prompted a sharp cut in output, the second-steepest in over three and a half years. Purchasing activity declined, while factory employment fell for a second month. Input costs rose for the first time in three months, reflecting higher prices for foodstuffs, commodities, electronic components, metals and plastics. Output prices edged up slightly. Stocks of inputs and finished goods fell again. Business confidence improved to its highest level since June 2025, supported by expectations of interest rate cuts, stronger demand and investment plans.
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Brazil Manufacturing PMI Falls in December
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The S&P Global Brazil Manufacturing PMI rose to 48.8 in November 2025 from 48.2 in October, signaling a moderate contraction and the slowest since May. The small improvement reflected renewed growth in employment and stocks of purchases. On the other hand, new orders fell at a faster pace amid weak domestic and external demand. Ongoing drops in new work drove a seventh straight fall in output. Also, softer demand and competition, alongside lower input costs, led to another reduction in output prices, the sharpest since August 2023. Input costs declined for the second time in over two years, a marginal decrease but a clear contrast to the heavy pressures seen in early 2025. Meanwhile, business confidence improved as companies hope for a resolution to the tariffs imposed by the US.
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