FX.co ★ Brazil Services PMI Falls to Near-Stagnation

Brazil’s S&P Global Services PMI slipped to 50.4 in May 2026 from 52.3 in April, edging closer to the 50-point stagnation mark and indicating only a marginal expansion in the sector. Survey data showed that overall new business was broadly flat, with transport, information, and communication the only monitored segment reporting higher output.

The softening in demand coincided with persistent price pressures. Although output charge inflation eased from April, it remained the second-highest reading in the past 15 months. Input costs rose at their fastest pace since February 2025, with consumer services experiencing the most intense cost pressures.

Higher operating expenses combined with fragile demand also restrained hiring, with employment growth slowing to its weakest rate in the current four-month expansion. At the same time, elevated inflation, fierce competition, and generally challenging business conditions weighed on sentiment, dampening confidence among service providers.