FX.co ★ Brazil Manufacturing Improves but Remains in Contraction

In November 2025, the S&P Global Brazil Manufacturing PMI edged up to 48.8 from October's 48.2, indicating a moderate contraction, although the slowest since May. This slight uptick was driven by renewed growth in employment and an increase in purchase stocks. However, new orders declined more rapidly due to weak domestic and international demand, marking the seventh consecutive decrease in output. Additionally, reduced demand and heightened competition, paired with decreased input costs, resulted in a further drop in output prices, marking the steepest decline since August 2023. Notably, input costs fell for only the second time in over two years, presenting a marginal dip contrasting sharply with the substantial pressures observed earlier in 2025. Meanwhile, business confidence improved as companies anticipate a resolution to the tariffs imposed by the United States.