FX.co ★ Brazil Private Sector Activity Continues to Contract

In May 2025, Brazil's S&P Global Composite PMI decreased slightly to 49.1 from 49.4 in the previous month, signaling a continued but modest contraction in overall economic activity. Both manufacturers, with a drop to 49.4 from 50.3, and service providers, with a slight increase to 49.6 from 48.9, faced the downturn. The volume of overall orders declined further in May, with a more pronounced contraction than in April. Both the industrial and service sectors experienced similar rates of decline, indicating a widespread weakening in demand. Job creation hit its lowest point in six months, as the fastest growth in the industrial sector was offset by a deceleration among service providers. In terms of pricing, there was a general deceleration in cost inflation. The rate of increase in input costs and service prices reached their lowest points in six and twelve months, respectively.