FX.co ★ Brazilian Services Activity at 4-Month High

In March 2025, the S&P Global Brazil Services PMI climbed to 52.5 from 50.6 in February, reaching a four-month peak and indicating robust activity within the services sector. This uptick was driven by a resurgence in new business, as demand improvements fueled a significant rise in sales—the most pronounced in four months. The Consumer Services sector spearheaded growth in both output and sales, while Finance & Insurance experienced the steepest increase in output charges. Input costs accelerated at their second-fastest rate in nearly three years, influenced by rising expenses in food, labor, materials, transportation, and utilities. Although selling price inflation remained elevated, it diminished to its lowest level of the year to date. Despite enduring substantial cost pressures and the challenges posed by high borrowing costs and restrained consumer spending power, companies continued to expand their workforce, albeit at a slower pace than in February. Confidence for 2025 reached its lowest point since May 2021 and lingered significantly beneath its long-term average, burdened by concerns surrounding defaults, inflation, and elevated borrowing costs.