The S&P Global Brazil Manufacturing PMI rose to 46.1 in October 2026, up from 44.8 in September, but remained well below the neutral 50.0 threshold, signaling a continued downturn in the sector. Output declined for the sixth consecutive month, and new orders fell for the nineteenth month in a row. Although the pace of contraction slowed, it was still the second steepest in three and a half years.
External demand also weakened: export orders decreased at the start of the final quarter, reflecting subdued global demand and rising prices. Even so, the drop in foreign sales was the mildest since July. Manufacturing employment edged lower overall, as some firms filled full-time vacancies while others reduced headcount.
Cost pressures eased across all three monitored manufacturing categories but remained elevated in absolute terms. In response, Brazilian manufacturers continued to raise selling prices to pass on part of these higher costs, with output price inflation holding steady at September’s pace. Despite the ongoing weakness in activity, business confidence improved and reached its highest level in nine months.
