FX.co ★ Brazil Private Sector Activity Contracts the Most Since April 2021

The S&P Global Composite PMI for Brazil dropped to 46.0 in September 2025, down from 48.8 in August, marking the most significant contraction in the combined private sector activity in nearly four-and-a-half years. Both manufacturers and service providers experienced declines, with the manufacturing PMI decreasing to 46.5 from 47.7 and the services PMI falling to 46.3 from 49.3. This downturn reflects a widespread weakening in demand, as evidenced by substantial reductions in factory orders and a slight decrease in new business for services. Despite this, private sector employment saw a slight improvement, mainly due to a marginal increase in the services sector, which partially counterbalanced the job reductions in manufacturing, resulting in only a modest overall change in employment levels. Input cost trends presented a mixed picture; there was a notable increase in service costs coupled with a decline—the first in nearly two years—in manufacturing costs. Consequently, output prices rose at their slowest rate since October 2023, as goods producers lowered prices while service providers raised theirs.