Brazil: Services PMI rises in July
The S&P Global Brazil Services Purchasing Managers’ Index (PMI) rose to 56.4 in July from 54.8 in June. 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.
July’s upturn was largely attributed to gains in new business amid a positive demand environment, with sales experiencing the second-quickest rise in 21 months, only behind May’s. In turn, stronger sales underpinned the fastest rise in business activity since June 2022. This rapid expansion prompted job creation to accelerate from the prior month.
On the pricing front, input costs surged to their highest in nearly a year and a half—due to currency depreciation affecting import costs—leading to the sharpest increase in prices charged for services since March 2023. Meanwhile, business sentiment fell to a three-month low but remained optimistic amid expectations of a pickup in private consumption and hopes for softer inflation in the year ahead.