Brazil’s S&P Global Composite PMI slipped to 48.8 in July 2026 from 50.7 in June, indicating a renewed contraction in private sector activity. While the downturn was relatively mild, it was the sharpest since October 2025, driven by a steeper fall in new orders and softer output, especially in the manufacturing sector. In response to subdued demand, firms continued to cut staff, resulting in a second straight monthly decline in employment. Both input cost and output price inflation eased to their lowest levels in four months, yet remained elevated by historical standards. Cost pressures were more pronounced in services, whereas manufacturers implemented more aggressive increases in selling prices.