2025.09.0313:14:17UTC+00Brazil Private Sector Activity Recovers from Early-2021 Lows

In August 2025, Brazil's S&P Global Composite PMI edged up to 48.8 from its lowest point since early 2021, noted at 46.6 in July. This indicates a milder downturn in overall private sector activity. The manufacturing sector saw a continued contraction with a PMI of 47.7, slightly down from 48.2, whereas the services sector improved towards stability with a reading of 49.3, up from 46.3. New orders across both sectors saw a moderate decline, although the decrease was less steep compared to the previous month, signaling a persisting, albeit easing, weakness in demand. Employment within the private sector decreased for a second consecutive month, affecting both manufacturers and service providers. The rate of job cuts was moderate, yet it marked the quickest pace seen in over four years. Meanwhile, input cost inflation saw an uptick, although the increase in output prices slowed compared to July.