FX.co ★ Brazil Services PMI Rises in August

The S&P Global PMI for Brazil's Services Business Activity Index experienced an uptick in August 2025, reaching 49.3 compared to 46.3 in July. This signals a continued but slight reduction in activity levels. The rate of demand deterioration has lessened, resulting in moderated contractions in both sales and output, although new business witnessed its fifth consecutive month of decline. Among the four service sectors analyzed, all exhibited downturns, with finance and insurance experiencing the most significant decrease. Companies maintained a cautious stance, reducing their workforce due to weak new work inflows. Nevertheless, there is increased optimism for the year ahead, buoyed by anticipated stronger demand. On the cost front, input price inflation quickened, while the increase in output charges was more moderate.