FX.co ★ Brazil Private Sector Contracts Further in June

The S&P Global Brazil Composite PMI decreased to 48.7 in June 2025, down from 49.1 in May, indicating a continued decline in private sector activity, reaching its lowest point since January. Both the manufacturing sector, with an index of 48.3, and the services sector, at 49.3, experienced downturns, marked by more significant reductions in output and new orders particularly among manufacturers. The decline in overall sales persisted at a moderate rate, mirroring May's performance. Employment trends showed a divergence, with job losses in manufacturing counterbalanced by slight increases in the services sector. Overall, private sector employment growth slowed to its lowest level in eight months. Input cost inflation intensified across both sectors, though the increase in output prices was the slowest observed since October 2023, as service providers absorbed more of the cost pressures compared to manufacturers.