Brazil’s private sector activity moved into contraction territory at the start of 2026, as the S&P Global Composite PMI fell to 49.9 in January 2026 from 52.1 in December 2025, according to data updated on 4 February 2026.
The drop below the 50-point threshold marks a shift from expansion to contraction in overall business activity, suggesting that momentum in Brazil’s economy weakened at the turn of the year. December’s reading of 52.1 had indicated moderate growth, but the latest print points to a softening environment across combined manufacturing and services sectors.
The January setback in the composite PMI will likely sharpen investor focus on the durability of Brazil’s recent recovery trend and on how policymakers respond if evidence of broader economic cooling continues to emerge in the coming months.
