Brazil Services PMI Rises in April

Brazil’s S&P Global Services PMI rose to 52.3 in April 2026 from 50.1 in March, signaling a faster, though still moderate, expansion. New orders rebounded at the start of Q2 after a decline in March, with three of the four major segments reporting higher sales, led by consumer services, while real estate and business services lagged. Firms reported stronger demand despite further increases in selling prices, with output charge inflation accelerating to its highest level in over a year. Employment continued to rise for a third straight month, although job creation remained modest. Business confidence improved, with sentiment reaching an 11-month high as firms expect activity to increase over the next 12 months.

Brazil's S&P Global Services PMI fell to 50.1 in March from 53.1 in February, indicating broadly no change in output. Companies cited demand retrenchment, lower customer onboarding, squeezed household incomes, and challenging economic conditions. New orders decreased for the first time in five months, albeit marginally. Output price inflation was sharp and the strongest since October, while input costs rose at the fastest pace in four months. Employment increased for the second consecutive month at a moderate pace, with job creation strengthening from February. Services companies remained confident of output growth over the coming 12 months, though positive sentiment fell from February and was below the series trend.

The S&P Global Brazil Services PMI rose 1.8 points to 53.1 in February 2026, up from 51.3 in January, marking the second-fastest expansion since November 2024, behind only December, and extending the growth streak to four consecutive months. Brazilian services firms reported a fourth straight monthly rise in new order volumes midway through Q1. Excluding December, this was the strongest pace of growth in 11 months. Companies secured more work despite raising selling prices at the fastest rate in three months. Input costs rose sharply, though inflation slowed to a two-year low, still above output price increases. Services employment increased in February, recovering after a decline in January, the first drop in five months. Looking ahead, service providers expressed optimism for output growth over the next 12 months, citing advertising, legislative changes, new offerings, investment, and the FIFA World Cup as key growth drivers.