Brazil’s private sector activity showed signs of recovery in February 2025, with the S&P Global Composite PMI rising to 51.2. Both manufacturing and services sectors improved, though challenges remained, particularly in services due to high costs and weaker purchasing power. Inflation in costs and selling prices intensified during this period.
In February 2025, Brazil’s S&P Global Composite PMI rose to 51.2, indicating a rebound in private sector activity from a four-year low of 48.2 recorded in January. This shift marks a moderate expansion following a 16-month contraction.
Both services and manufacturing outputs showed improvement; however, manufacturing registered more significant gains compared to services, which experienced only a slight recovery. New business activity also increased, primarily propelled by goods producers.
Despite this growth, the services sector faced challenges due to diminished purchasing power and elevated borrowing costs. Additionally, cost inflation intensified, particularly in services, which reported the most substantial price pressures in 18 years.
Furthermore, selling price inflation rose to its highest level since mid-2022 as businesses transferred higher costs to consumers.
Brazil’s private sector demonstrated a recovery in February 2025, with the Composite PMI indicating growth after a prolonged contraction. Manufacturing drove the increase, while the services sector struggled with external economic pressures. Rising cost and selling price inflation highlighted the ongoing financial challenges within this recovery.
Original Source: www.tradingview.com
