Brazil’s private sector activity rebounded in February 2025, with the S&P Global Composite PMI improving to 51.2 from 48.2, indicating moderate growth. Manufacturing output saw significant gains, while services showed only minor recovery. Inflation pressures intensified, particularly in services, impacting selling prices.
In February 2025, Brazil experienced a notable rebound in private sector activity, as indicated by the S&P Global Composite PMI, which rose to 51.2 from 48.2 in January. This shift marks a moderate expansion following a period of contraction that lasted for 16 months.
The increase in output was led by the manufacturing sector, which outperformed the services sector that experienced only a slight recovery. New business saw a resurgence, mainly propelled by goods producers, although the services sector continued to struggle due to weakened purchasing power and elevated borrowing costs.
Cost inflation has intensified, particularly in the services sector, which faced the most significant pressures observed over an 18-year data collection period. Selling price inflation also surged, reaching its highest level since mid-2022 as companies passed increased costs onto consumers.
In summary, Brazil’s private sector has shown signs of recovery with a rise in the S&P Global Composite PMI, indicating renewed activity after a prolonged downturn. Manufacturing led the growth, while services faced challenges due to economic factors. Persistent inflationary pressures remain a concern as firms adjust their prices in response to rising costs.
Original Source: www.tradingview.com
