Brazil’s S&P Global Composite PMI rose to 51.2 in February 2025, signaling a recovery in private sector activity after a contraction. Manufacturing output significantly increased, while services saw marginal growth. Cost inflation and selling price inflation surged, affecting consumer pricing.
In February 2025, Brazil’s S&P Global Composite PMI improved to 51.2 from January’s 48.2, indicating a moderate rebound in private sector activity following a notable contraction. This marks the end of the first contraction period in 16 months.
The increase was primarily attributed to the manufacturing sector, which experienced significant output growth, while the services sector reported only a slight improvement. Despite this overall progress, the growth in services was limited due to weak purchasing power and elevated borrowing costs affecting consumers.
Simultaneously, cost inflation intensified, particularly impacting the services sector, which registered the most considerable pressures in 18 years of data collection. Consequently, firms elevated their selling prices significantly, with inflation reaching levels not seen since mid-2022 as they attempted to offset rising operational costs.
The recent increase in Brazil’s private sector activity, as indicated by a rise in the S&P Global Composite PMI, reflects a recovery from a significant downturn. With manufacturing outpacing services growth and pressing inflation influencing pricing strategies, it is crucial for firms to navigate these challenges to sustain this momentum.
Original Source: www.tradingview.com
