Brazil’s Manufacturing PMI Falls in August
The S&P Global Brazil Manufacturing PMI decreased to 47.7 in August 2025, down from 48.2 in July, indicating a fourth consecutive month of contraction and marking the most significant downturn in operating conditions since mid-2023. New orders experienced their steepest decline in over two years, driven by subdued demand, low client confidence, and the repercussions of US tariffs. Domestic demand was notably weak, although increased sales to Europe and South America provided some compensation for the reduction in US orders. Output fell for the fourth consecutive month, with employment seeing the fastest contraction since April 2023. Companies reduced input purchases for the fifth month running, pointing to ongoing weakness. While input costs rose substantially, the inflation rate remained at its lowest in 17 months. Despite these challenges, business sentiment was higher than its long-term average, buoyed by diversification, investments in machinery, and expectations of a demand recovery.
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