Brazil’s manufacturing sector lost expansionary momentum in May, with the S&P Global Manufacturing PMI dropping to 49.1 from 52.6 in April 2026, according to data updated on 1 June 2026. The move pushes the index back below the 50-point threshold that separates growth from contraction, signaling a deterioration in overall operating conditions.
The reversal comes after April’s reading of 52.6 had pointed to improving activity in the sector. May’s decline to 49.1 suggests that the recovery in Brazilian manufacturing may be fragile, with demand and production conditions softening enough to halt the prior month’s expansion. Investors and policymakers will be watching upcoming data closely to assess whether this downturn proves temporary or marks the start of a more prolonged slowdown in industrial activity.
