In January, Brazil’s service sector PMI climbed to 53.1, its highest since June, as S&P Global reported.
This jump from December’s 50.5, combined with the industrial PMI’s increase to 52.8, elevated the composite index to 53.2. It’s the most robust since August 2022.
This growth is driven by the sharpest rise in new orders since last June. Boosted by solid demand and positive outlooks, it also spurred job creation.
Even with hikes in food, fuel, and utilities, the inflation rate, faster than in December, was still among the lowest in over three years.
Pollyanna De Lima of S&P Global Market Intelligence observed significant growth in both the industrial and service sectors.
However, she noted a contrast: easing price pressures in manufacturing versus enduring inflation in services.
“Cost pressures dropped to their July low, but service prices hit an eight-month high,” De Lima mentioned.
This reflects the diverse economic dynamics in Brazil, showcasing different inflation effects and growth paths across sectors.
This matters because it indicates resilience and challenges in Brazil’s economy, highlighting areas of strength and concern.