In a promising sign for Brazil's service sector, the S&P Global Services Purchasing Managers' Index (PMI) edged higher in May, reaching 49.6, up from 48.9 in April 2025. This latest update, which was released on June 4, 2025, highlights a gradual movement towards stabilization within the industry that has been under pressure.
Despite still being below the 50-point threshold that separates contraction from expansion, the increase in PMI indicates a slower pace of contraction and raises expectations for future growth. With May's reading marking an improvement over the previous month, there is growing optimism among industry stakeholders that the services sector might soon see a return to positive growth.
The increase in the PMI reflects certain underlying positive trends, although challenges remain. Businesses are cautiously optimistic, recognizing that while the sector has shown resilience, continued support and strategic initiatives may be necessary to ensure sustained recovery and expansion in subsequent months.
