FX.co ★ Brazil Manufacturing PMI Weakens in January

In January 2026, the S&P Global Brazil Manufacturing PMI decreased to 47.0 from 47.6 in December, highlighting the weakest industry conditions in four months. The decline was driven by reduced demand, leading to another drop in new orders, including a downturn in foreign sales. Both intermediate and investment goods producers experienced significant contractions, whereas consumer goods saw only a slight decline. Notably, capital goods was the sole segment to report an increase in new export orders. A sharp reduction in order inflows resulted in a considerable decrease in output, marking the second-largest fall in over three and a half years. Purchasing activities reduced, and factory employment declined for the second consecutive month. For the first time in three months, input costs rose, driven by higher prices for foodstuffs, commodities, electronic components, metals, and plastics. Output prices experienced a slight uptick. Inventories of inputs and finished goods continued to diminish. Meanwhile, business confidence surged to its highest level since June 2025, buoyed by expectations of interest rate cuts, stronger demand, and future investment plans.