Brazil Softer July Manufacturing and Services PMI

Economics Research 5 August 2026 | 9:43AM EDT

Brazil: Softer July Manufacturing and Services PMI; Still Intense but Moderating Input Cost/Price Pressures (Ramos)

Bottom Line: The Markit Manufacturing PMI declined by 3.3pt to 47.5 in July, returning Alberto Ramos | into contractionary territory. Employment declined. Domestic demand and production Goldman Sachs & Co. LLC declined at a faster rate. Cost pressures remain intense but eased visibly. Supplier delivery times lengthened. The Services PMI declined by 1.6pt to 49.7, returning into contractionary territory. New business moved into contractionary territory, while employment declined at a slower rate. Overall, the Composite PMI declined by 1.8pt to 48.8, falling into contractionary territory. Input/Output prices increased rose at slower paces in services and manufacturing.

1. The Markit Manufacturing PMI declined by 3.3pt in Jul to 47.5, with the headline index returning to contractionary territory. 2. The sequential decrease of the headline PMI indicator was broad-based, and the main components are tracking in contractionary territory: Output (-2.5pt to 46.2), New Orders (-5.0pt to 43.4) and Input purchases (-2.3pt to 47.1). Employment (-3.1pt to 49.3) also declined. 3. Input (cost) and output price pressures are still intense but eased visibly at the margin: Input costs (-5.0pt to 67.9; still 19.7pt above Dec-25) and Output prices (-0.9pt to 60.9; +13.6pt above Dec-25) rose, albeit at a slower rate from Jun. Part of the very significant Feb-Apr increase in input costs was absorbed in margins. 4. Supplier delivery times lengthened (+3.4pt to 48.8). 5. The backlog of work declined (-4.7pt to 46.8). 6. Stocks of finished items (post-production inventories) declined (-1.8pt to 51.4) and the stocks of purchases/inputs rose at a faster pace (-0.4pt to 53.4). 7. The Services PMI declined by 1.6pt in Jul to 49.7, returning to contractionary territory. New Business entered contractionary territory (-1.9pt to 48.9). Outstanding Business was flattish at 46.3. Employment (+1.2pt to 49.3) declined at a slower rate. Input prices pressure in services (-2.1pt to 69.6) and prices charged (-1.3pt to 56.5) rose at a milder pace. 8. The Composite PMI declined by 1.8pt 48.8 in Jul, dragged down by both the manufacturing and services sector PMIs. New Orders (-2.7pt to 47.5) declined into contractionary territory. Employment declined at a slower pace (0.1pt to 49.3). Input (-1.2pt to 69.2) and output (-1.2 to 58.8) price pressures eased slightly, driven by both sectors.

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PMIs (50+ = Optimism) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jan Feb Mar Apr May Jun Jul

Composite Input Prices Output Prices Manufacturing Input Prices Output Prices Services Input Prices Prices Charged

Source: Markit, Goldman Sachs Global Investment Research

Brazil: Manufacturing PMI Brazil: Services PMI

June-26 July-26 Change signalled June-26 July-26 Change signalled

PMI 50.8 47.5 Decline PMI 51.3 49.7 Decline

Output 48.7 46.2 Decline, faster rate Employment 48.1 49.3 Decline, slower rate

New Orders 48.4 43.4 Decline, faster rate New Business 50.8 48.9 Decline

New Export Orders 46.2 46.8 Decline, slower rate Outstanding Business 46.3 46.3 Decline, slower rate

Employment 52.5 49.3 Decline Prices Charged 57.8 56.5 Rise, slower rate

Backlogs of Work 51.5 46.8 Decline Input Prices 71.7 69.6 Rise, slower rate

Output Prices 61.8 60.9 Rise, slower rate Input Prices 73.0 67.9 Rise, slower rate Stocks of Purchases 53.9 53.4 Expansion, slower rate Stocks of Finished Goods 53.2 51.4 Expansion, slower rate

Note: Index readings above 50.0 signal an increase or improvement on the prior Note: Index readings above 50.0 signal an increase or improvement on the prior month, while readings below 50.0 indicate a decrease. month, while readings below 50.0 indicate a decrease.

Source: Markit, Haver Analytics Source: Markit, Haver Analytics

Brazil Manufacturing PMI Brazil: Composite PMI June-26 July-26 Change signalled (Index; + 50 = expansion; sa)…