Brazil’s manufacturing sector continued to contract at the start of 2026, as the S&P Global Manufacturing Purchasing Managers’ Index (PMI) eased to 47.0 in January from 47.6 in December 2025.
The latest reading, published on 2 February 2026, marks a further move below the 50.0 threshold that separates expansion from contraction, signaling a deepening downturn in industrial activity. The decline from December’s level suggests that operating conditions for Brazilian manufacturers deteriorated at a slightly faster pace as the new year began.
While the PMI remains below neutral, the marginal shift from 47.6 to 47.0 points to a continued, but not sharply accelerating, slowdown. Investors and policymakers will now watch upcoming data closely to assess whether January’s reading signals a persistent weakening in demand or a temporary soft patch in Brazil’s manufacturing cycle.
