FX.co ★ Brazil’s Manufacturing Contraction Eases as S&P Global PMI Ticks Up in February

Brazil’s manufacturing sector showed a modest improvement in February, with the S&P Global Manufacturing PMI edging up to 47.3 from 47.0 in January 2026. While the index remained below the 50.0 threshold that separates expansion from contraction, the latest reading suggests the downturn in industrial activity is easing.

The February 2026 figure indicates that manufacturing conditions are still deteriorating, but at a slightly slower pace than at the start of the year. The marginal uptick may point to stabilizing demand or tentative signs of a bottoming-out process in the sector, though continued sub-50 readings highlight ongoing challenges for Brazilian industry.

The updated data, released on 2 March 2026, will be closely watched by investors and policymakers assessing the momentum of Brazil’s real economy at the start of the year, as well as its potential implications for growth, employment, and monetary policy in the coming months.