05.11.202613:05:15UTC+00Brazil Private Sector Contracts the Most in Over 6 Years

The S&P Global Composite PMI for Brazil dropped to 44.4 in October 2026, down from 47.4 in September and marking its lowest level in more than six years. This reading indicates a fourth consecutive month of contraction in the Brazilian private sector. The downturn was broad-based, encompassing both manufacturing and services, with overall activity declining at the fastest rate since the period preceding late 2020. New business also fell at its sharpest pace since mid-2020.

Manufacturers saw steeper declines in sales and output than service providers; however, their rates of contraction eased compared with September. Softer demand led companies to reduce staffing, though the decline in employment was only marginal, while backlogs of work fell sharply.

On the pricing front, both input costs and output charges increased more slowly than in September, yet remained above their long-run averages. Cost pressures were more intense in the services sector, whereas manufacturers accelerated the pace of their selling price increases.