Brazil Services PMI Falls to 49.2 in September
Brazil's services sector shrank in September as election caution hit demand, while the composite PMI fell to 47.4, the sharpest drop in a year. The post Brazil Services PMI Falls to 49.2 in September appeared first on The Rio Times .
The Brazil Services Purchasing Managers' Index (PMI) declined to 49.2 in September, marking the first contraction since October 2025, according to S&P Global. This indicates a slowdown in service activity, which was already contracting, adding to concerns about Brazil's economy cooling ahead of a close presidential runoff. The composite PMI, encompassing both services and manufacturing, fell to 47.4 from 49.1, the steepest drop in private sector output in a year.
A PMI above 50 signifies expansion, while below 50 indicates contraction. Out of 400 surveyed service companies, firms reported new business contracting for the fourth time in seven months, citing client budget constraints, competition, weak demand, and canceled projects as key factors. Employment cutbacks were the most rapid in three months.
Transport, information, and communication services showed the strongest growth, while real estate and business services lagged behind. A silver lining emerged from easing input cost inflation to a six-month low, though firms still faced rising prices for various goods. Service providers managed to raise prices at the slowest rate in eight months.
Despite the contraction, companies grew more optimistic about the year ahead, buoyed by expectations of improved economic conditions post-election.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
