01.10.202613:34:11UTC+00Brazil Manufacturing Contracts Sharply

The S&P Global Brazil Manufacturing PMI fell to 44.8 in September 2026 from 46.3 in August, signalling the sharpest deterioration in manufacturing operating conditions since April 2023. The quarterly average declined to 46.2, its lowest level since the second quarter of 2023.

Factory production contracted for the fifth consecutive month, with the downturn the most pronounced since the onset of the COVID-19 pandemic in early 2020. New orders decreased at the fastest rate in nearly four years, while export demand fell for a fifth straight month. Softer workloads enabled firms to reduce backlogs at one of the quickest paces recorded in the survey’s history.

Employment declined for a third month in a row, though the pace of job shedding eased compared with August. Purchasing activity also fell for the fifth successive month, registering its steepest contraction since April 2023. Pre‑production inventories recorded their sharpest drop since October 2025.

Cost pressures re‑emerged, but subdued demand and heightened competition constrained firms’ ability to pass on higher costs, pushing output price inflation to a seven‑month low. Despite the challenging operating environment, companies remained optimistic about the year‑ahead outlook.