FX.co ★ Brazil Private Sector Activity Contracts

In April 2025, Brazil's S&P Global Composite PMI declined to 49.4, down from March's 52.6, indicating a slight contraction in private sector activity as aggregate output decreased for the first time in four months. Both the services and manufacturing sectors experienced a downturn, with factory production growth slowing and services activity entering a phase of contraction. New business also reversed into contraction, as declines were noted in both services firms and goods producers, leading to composite sales dropping for the first time in three months. Employment in the private sector grew at its slowest rate in four months, reflecting a more restrained hiring environment due to subdued demand. On the pricing front, private sector companies reported a decline in inflation for both input costs and output charges, dropping to five- and ten-month lows, respectively. Nevertheless, inflationary pressures remained somewhat stronger in the service sector.