2025.11.0314:33:54UTC+00Brazil Manufacturing Contraction Eases in October

In October 2025, the S&P Global Brazil Manufacturing PMI increased to 48.2 from 46.5 in September, indicating a less severe contraction and continuing a six-month trend below the 50 threshold. Both production and new orders experienced slower declines, with some businesses noting benefits from restocking, more aggressive sales tactics, and increased demand for specific products. The contraction in output was the least severe in half a year, and the reduction in sales was the mildest since May. Nonetheless, international demand deteriorated for the third consecutive month, primarily affected by reduced orders from the US. The rate of job losses increased, resulting in the most significant reduction in employment in two and a half years, as factories sought to reduce expenses amid declining orders. Backlogs decreased considerably, highlighting an increase in unused capacity. After an uncommon drop in September, input costs experienced a slight rise, whereas output prices continued to decline for the second month, albeit at a slower rate.