The S&P Global Composite PMI for Brazil improved to 51.2 in February 2025, indicating moderate growth in private sector activity after a prior contraction. Manufacturing output led the gains, while services showed only marginal recovery. New business growth was observed, particularly in goods production, although the services sector faced challenges due to weak purchasing power and high borrowing costs. Cost inflation is accelerating, impacting selling prices significantly.
In February 2025, Brazil experienced a significant increase in private sector activity, as indicated by the S&P Global Composite PMI, which rose to 51.2 from 48.2 in January. This change marks a notable recovery following a decline, the first in 16 months. The growth in the private sector is attributed primarily to advancements in the manufacturing sector, whereas the services sector exhibited only a slight improvement.
The increase in business activity can be largely attributed to the resurgence in new business, particularly among goods producers. However, the services sector continued to struggle due to factors such as diminished purchasing power and elevated borrowing costs, which limited overall growth.
Despite the positive indicators, cost inflation is on the rise, with the services sector experiencing the most significant pressures in 18 years of data. Additionally, inflation in selling prices increased, reaching levels not seen since mid-2022, as companies transferred rising costs to consumers.
In summary, Brazil’s private sector is showing signs of recovery, with increased activity in both manufacturing and services as reflected in the rise of the S&P Global Composite PMI. However, challenges remain due to high inflation and financial constraints on the services sector, prompting careful monitoring of economic conditions moving forward.
Original Source: www.tradingview.com
