Financial News: Brazil Manufacturing Contraction Deepens In December

Brazil Manufacturing Contraction Deepens In December

01/02/2026 - 09:04:00 (RTTNews)

(RTTNews) - The Brazilian manufacturing downturn deepened in December as output and new orders declined at faster rates, survey data from S&P Global showed on Friday.

The purchasing managers' index, or PMI, for the manufacturing sector dropped to 47.6 in December from 48.8 in November. Any score below 50 indicates contraction. Moreover, this was the sharpest downturn since September.

New orders declined at one of the fastest rates in two-and-a-half tears due to demand retrenchment. As a result, output fell at the quickest pace in three months.

On the price front, subdued demand for materials sparked back-to-back declines in average cost burdens. This encouraged firms to reduce selling prices at the steepest pace since July 2023.

Brazilian goods producers scaled back their workforce numbers in December amid cost control initiatives and spare capacity.

Looking ahead, firms remained confident about output expectations over the next year, buoyed by hopes of better demand conditions, lower interest rates, tech investment, and a greater focus on enhancing productivity.

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