Brazilian Private Sector Activity Shows Moderate Recovery in February 2025
Brazil’s S&P Global Composite PMI rose to 51.2 in February 2025 from 48.2 in January, indicating a moderate recovery in private sector activity. Manufacturing output led the gains, while services experienced minimal growth due to high costs and borrowing pressures. Cost inflation is rising, particularly in services, with selling price inflation reaching levels not seen since mid-2022.
In February 2025, Brazil experienced a notable recovery in private sector activity, as indicated by the S&P Global Composite PMI, which rose to 51.2 from January’s low of 48.2. This improvement marks a moderate expansion following a contraction that had persisted for 16 months.
The manufacturing sector particularly demonstrated strength, leading the overall output increase, while the services sector recorded only a slight improvement. Despite an uptick in new business, growth in services was limited due to low purchasing power and elevated borrowing costs affecting consumer spending.
Cost inflation in the Brazilian market has intensified, with the services sector facing the most significant pressures in 18 years, highlighting ongoing economic challenges. Additionally, inflation of selling prices reached its highest level since mid-2022 as businesses transferred increasing costs onto consumers.
The recent increase in Brazil’s private sector activity, as evidenced by the S&P Global Composite PMI reaching 51.2 in February, signals a positive shift after a lengthy contraction. While manufacturing led the recovery, challenges remain within services, notably from high costs and weak purchasing capacity, emphasizing the complexities of the current economic landscape.
Original Source: www.tradingview.com
