FX.co ★ Brazil Services PMI Returns to Expansion

Brazil’s S&P Global Services PMI rose to 50.5 in August 2026 from 49.7 in July, climbing back above the neutral 50.0 threshold and indicating a renewed expansion in output. Demand conditions showed signs of stabilising midway through the third quarter, as new business volumes were broadly unchanged after having fallen in July at the steepest rate in ten months. The transport, information and communication segment posted the strongest performance in both output and new orders.

Business confidence also improved: the share of firms expecting activity to increase over the next year rose from 29% in July to 32%, pushing overall sentiment to a three‑month high. Labour market conditions stabilised as well, with service‑sector employment holding steady following declines in June and July.

Input costs continued to rise sharply, though the rate of increase eased compared with July. At the same time, selling-price inflation intensified as firms sought to protect their margins by passing part of their higher costs on to clients.