Brazil's economic landscape showcased further contraction in June 2025, as reflected by the latest S&P Global Composite PMI. On June 2025, the index dropped to 48.7, down from 49.1 in May 2025, indicating a continued decline in business activities across sectors. The recent data, updated on July 3, 2025, highlights a trend of contraction, with the PMI remaining below the neutral 50.0 threshold, which separates expansion from contraction.
The drop in the Composite PMI suggests that businesses in Brazil are experiencing a prolonged phase of weakened demand and economic pressures. As global uncertainties and domestic challenges persist, companies are likely facing headwinds, impacting their production output and service activities.
This consecutive fall reflects the potential struggles in both industry and services, signaling that government and policy makers may need to prepare additional measures to stimulate the economy and address these declining trends to drive growth in the coming months. Market observers are eager to see how the Brazilian economy will respond to these challenges as the year progresses.
