FX.co ★ Brazil Manufacturing PMI Falls in December

The S&P Global Brazil Manufacturing PMI dipped to 47.6 in December 2025 from 48.8 in November, indicating the steepest downturn since September. This decline in new business activity occurred at one of the swiftest paces in two-and-a-half years, causing a marked contraction in factory output, the most significant decrease since last September. In response to subdued demand, companies have been reducing their input purchases for the ninth consecutive month, with December seeing the most notable reduction since April 2023. Input costs decreased for the second month in a row, while output prices fell for the fourth month running at their most rapid rate since July 2023. This trend has been driven by discounting, cost savings, and initiatives aimed at boosting sales. Employment figures fell after a brief rise in November, marking the fourth reduction in payrolls over the past seven months. Despite the current challenges, manufacturers remain optimistic about a rise in production in 2026, fueled by expectations of stronger demand, reduced interest rates, investments in technology, and gains in productivity.