FX.co ★ Brazil Manufacturing PMI Weakens

The S&P Global Brazil Manufacturing PMI declined to 46.3 in August 2026 from 47.5 in July, indicating a second consecutive monthly weakening in sector conditions and marking the sharpest contraction in 40 months. Output fell for the fourth month in a row, registering its fastest decline in more than three years. New business decreased for the seventeenth consecutive month, with the pace of contraction accelerating compared with July. New export orders also dropped for the fourth straight month and at the quickest rate in over three-and-a-half years. Softer demand weighed on both staffing and capacity, as employment declined for a second month and at the fastest pace since October 2025. Backlogs continued to shrink. Inventory and purchasing trends signaled a cautious operating environment, while price pressures eased for the fourth successive month. Nonetheless, despite the subdued activity data, manufacturers remained optimistic about the outlook for the year ahead.