Brazil Services PMI Rises to 52.4 in April

A reading above 50 indicates expansion in the sector. The increase marks a return to growth following a slight contraction in the prior month. The S&P Global Brazil Composite PMI, which combines services and manufacturing, also climbed to 52.4 in April from 49.9 in March.

This represents the first expansion in overall business activity since February. The services sector drove the improvement as manufacturing output showed more modest gains.

Companies reported higher levels of new business in April, contributing to the rise in the headline indices. Output across the combined private sector increased at a solid pace, with service providers noting stronger demand. Backlogs of work also grew modestly during the month.

Employment in the services sector stabilized after declining in March. Firms added staff at a marginal pace, while manufacturing employment remained broadly unchanged. Input cost pressures eased slightly but remained elevated, with companies passing on higher costs to customers through increased selling prices.

The rate of increase in selling prices was the fastest in three months. Service providers cited greater cost burdens linked to wages, fuel, and raw materials. Business confidence improved from March levels, though it stayed below the long-run average as some firms expressed caution over the economic outlook.

The data comes as Brazilian officials monitor inflation and growth indicators ahead of future policy decisions by the central bank. The PMI readings provide an early snapshot of private-sector performance before official gross domestic product figures for the second quarter are released.