Brazil Manufacturing PMI Returns to Contraction

2026-06-01 13:52 By Isabela Couto 1 min. read

The S&P Global Brazil Manufacturing PMI fell to 49.1 in May 2026 from 52.6 in the previous month, signaling a renewed deterioration in factory activity after April's expansion.

The survey showed manufacturers ended stockpiling efforts, with both purchasing activity and production declining amid weaker demand.

Total new orders fell for the fourteenth consecutive month, while export sales contracted sharply as tariffs and the war in the Middle East weighed on demand.

Supply-chain disruptions remained severe, with vendor shortages and the conflict causing one of the sharpest deteriorations in delivery times in nearly four years.

As a result, input cost inflation stayed close to record highs, driven by rising energy prices, while output charges increased at one of the fastest rates since 2021.

Still, manufacturers remained optimistic about future production, citing hopes for improved economic conditions after the presidential elections and an eventual end to the Middle East conflict.



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Brazil Manufacturing PMI Returns to Contraction
The S&P Global Brazil Manufacturing PMI fell to 49.1 in May 2026 from 52.6 in the previous month, signaling a renewed deterioration in factory activity after April's expansion. The survey showed manufacturers ended stockpiling efforts, with both purchasing activity and production declining amid weaker demand. Total new orders fell for the fourteenth consecutive month, while export sales contracted sharply as tariffs and the war in the Middle East weighed on demand. Supply-chain disruptions remained severe, with vendor shortages and the conflict causing one of the sharpest deteriorations in delivery times in nearly four years. As a result, input cost inflation stayed close to record highs, driven by rising energy prices, while output charges increased at one of the fastest rates since 2021. Still, manufacturers remained optimistic about future production, citing hopes for improved economic conditions after the presidential elections and an eventual end to the Middle East conflict.
2026-06-01
Brazil Factory Activity Rebounds to 1-Year High
The S&P Global Brazil Manufacturing PMI rose to 52.6 in April of 2026 from 49 in the previous month, reflecting the first expansion in the country's factory activity in one year, and the highest in 14 months. The survey indicated that goods producers recorded a surge in production as clients aimed to front-load purchases of their input goods before disruptions from the war in the Middle East would result in shortages. Hence, demand improvements drove production increases to center around industries with exposure to the war, driving domestic orders to continue falling. The higher demand for capital goods, in addition to already-present supply disruptions from the war, drove input cost inflation to its highest in survey history, while output charges rose the most since September 2020. Still, business optimism was buoyed by hopes that the war could end soon, maintaining traction for orders.
2026-05-04
Brazil Manufacturing PMI Edges Up in March
Brazil's S&P Global Manufacturing PMI edged up to 49.0 in March 2026 from 47.3 in February, marking the slowest contraction since May 2025 but remaining below 50.0 for the 11th consecutive month. New orders fell sharply, though at the slowest pace since December, as weak demand, Middle East tensions, and constrained budgets weighed on sales. Export orders stabilized after 11 months of decline, with some firms accessing new markets via US tariffs, though Argentina and China sales fell. Factory production contracted mildly, the weakest since October, with some restocking offsetting order cancellations. Input costs surged to an 18-month high on Middle East tensions and oil prices, prompting firms to raise selling prices to an 11-month peak. Employment rose slightly for the second straight month. Business confidence weakened to an 11-month low amid competition, geopolitical risks, and election uncertainty.
2026-04-01