Brazil's S&P Global Manufacturing PMI rose to 49.0 in March 2026 from 47.3 in February, signaling the slowest downturn since May 2025 but remaining below the 50.0 threshold for the 11th consecutive month. New orders continued to fall sharply, though the rate of decline eased to its slowest since December, as subdued demand, tensions in the Middle East, and tighter budgets weighed on sales. Export orders stabilized after 11 straight months of contraction, with some firms managing to tap new markets in the wake of US tariffs, although sales to Argentina and China declined.
Manufacturing output also contracted, but only mildly, marking the softest fall since October, as restocking activity helped offset order cancellations. Input costs surged to an 18‑month high, driven by geopolitical tensions in the Middle East and rising oil prices. In response, firms raised their selling prices at the fastest pace in 11 months. Employment increased slightly for the second consecutive month. However, business confidence weakened to an 11‑month low, dampened by intensifying competition, geopolitical uncertainties, and concerns surrounding upcoming elections.
