FX.co ★ Brazil Private Sectors Returns to Contraction

Brazil’s S&P Global Composite PMI slipped to 49.5 in May 2026 from 52.4 in April, signaling a renewed contraction following a solid expansion in the previous month. The setback was chiefly driven by a steep decline in manufacturing output, while growth in services activity slowed sharply, edging close to stagnation. A moderate fall in overall new orders curbed hiring, with employment growth easing to its weakest rate in the current four‑month expansion streak. At the same time, cost pressures were among the most intense in four years and were largely concentrated in the manufacturing sector. Selling price inflation also remained elevated, recording its second-highest reading since July 2022.