Brazil: Services PMI rises to near two-year high in May
The S&P Global Brazil Services Purchasing Managers’ Index (PMI) rose to a 22-month high of 55.3 in May from 53.7 in April. As a result, the index moved further above the 50.0 no-change threshold, and signaled a faster improvement in services-sector business activity compared to the previous month.
May’s upturn reflected a marked increase in new orders, which have been supported by demand strength, rising customer numbers, and local events. This surge in new business, the fastest in 22 months, spurred job creation, with employment expanding at the joint-fastest pace since October 2022.
Regarding prices, the report highlighted another sharp increase in operating expenses, attributed to higher fuel, material, rent, and wage costs. Despite these cost pressures, charge inflation moderated to an eight-month low. Lastly, business confidence rebounded and hit a nine-month high, reflecting an optimistic outlook for the service sector’s growth prospects.