Brazil’s S&P Global Composite PMI edged up to 49.1 in August 2026 from 48.8 in July. While this signalled a second consecutive month of contraction in private-sector activity, the downturn was milder than in the previous period.
Weakness remained largely concentrated in manufacturing, whereas services activity showed signs of stabilizing. Manufacturers reported a steep drop in new orders, in contrast to service providers, where client demand was broadly unchanged. Overall sales continued to decline, though at a slower pace than in July.
Labor market conditions stayed under strain. Manufacturers kept cutting jobs, while service-sector employment was largely steady, leading to a third straight month of overall private-sector job losses.
Inflationary pressures eased in August, as both input costs and output charges increased at a slower pace. Even so, price pressures remained high by historical standards, particularly in the services sector.
