Brazil Services Activity Contracts for 3rd Month

2025-07-03 13:33 By Heloisa Zanati 1 min. read

The S&P Global Brazil Services PMI fell to 49.3 in June 2025 from 49.6 in May, pointing to the third consecutive month of contraction in the services sector, amid adverse demand trends and high cost pressures.

Figures also rounded off the worst quarterly performance for the sector since Q2 2021.

New orders decreased for the third month in a row which somewhat constrained output price inflation.

Also, net employment increased further, marking an eight-month sequence of expansion.

On the other hand, there was a marginally quicker increase in input prices, namely cleaning products, construction materials, labour, food, fuel and utility bills (electricity and water).

Meanwhile, the level of positive sentiment slipped to a three-month low due to fierce competition, high interest rates and revenue concerns.

A few panellists were also worried about the impact of election uncertainty on the economy.



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