FX.co ★ Brazil Manufacturing PMI Falls Close to Year-Low in June

In June 2025, the S&P Global Brazil Manufacturing PMI dropped to 48.3 from May's 49.4, indicating the most significant decline in factory activity since July 2023. This downturn marked the sector's weakest quarter since late 2023. A pronounced decrease in new export orders was the primary cause, leading to an overall reduction in sales. Consequently, manufacturers responded with deeper production cuts and initiated staff reductions for the first time in almost two years. Additionally, firms decreased their input purchases and inventory levels to preserve cash flow. Although there was a slight increase in input cost inflation, it remained below the historical trend, and output prices saw only a modest rise.