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03.06.202613:00:00UTC+00Brazil’s Private Sector Activity Slips Into Contraction in May as Composite PMI Falls Below 50

Brazil’s private sector momentum weakened in May 2026, with the S&P Global Composite PMI dropping to 49.5 from 52.4 in April, signaling a move from expansion to contraction in overall business activity.

The decline, based on data updated on 3 June 2026, marks the first time in recent months that the composite index has slipped below the 50.0 threshold that separates growth from contraction, pointing to a broad-based softening across both manufacturing and services.

The reversal from April’s expansionary 52.4 reading suggests that demand conditions have cooled, and may prompt closer scrutiny from investors and policymakers watching for signs of slowing economic momentum in Latin America’s largest economy.

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