The headline S&P Global Brazil Services Business Activity Index dropped to 44.5 in October 2026 from 49.2 in September, indicating the steepest contraction in output since April 2021. This downturn was driven by a further fall in new business inflows, marking a second consecutive monthly decline. Sales registered their fastest decline in more than five years, as subdued demand weighed on business sentiment among service providers. While firms still anticipated growth, overall confidence weakened compared with September. Softer demand also hit employment: excess capacity led to additional job cuts across Brazil’s services sector. On the price front, input cost pressures eased in October but remained elevated by historical standards. At the same time, prices charged for services rose at the slowest pace since mid-2025, though the rate of inflation continued to exceed its long-run average.