FX.co ★ Brazil Manufacturing PMI Falls Again

In April 2025, the S&P Global Brazil Manufacturing PMI declined to 50.3 from 51.8 in March, marking its lowest point since December 2023 and indicating a near halt in growth. For the first time in 16 months, new orders fell, adversely affecting the index, as heightened costs and market uncertainty impacted sales volume. Although production increased for the third month in a row, it did so at its slowest rate yet, hindered by order cancellations, declining sales, and labor shortages. Input cost inflation reached its lowest level since March 2024, with businesses toggling between passing on costs to customers and offering discounts to stimulate sales. Going forward, manufacturers remain wary that if the subdued growth continues, the sector might shift from stagnation to contraction. The decrease in orders, diminishing inventories, and a bleak outlook are undermining confidence and creating uncertainty about recovery prospects.