PMI Index (Purchasing Managers Index) exceeds growth threshold, marking improvement after retraction
The service sector in Brazil registered a recovery in February 2025, as indicated by the S&P Global Purchasing Managers Index (PMI) on Tuesday (5.mar.2025). The index reached 50.6, exceeding the 50 threshold that distinguishes contraction growth. Performance marks an improvement compared to the rate of January 47.6, when the sector saw its 1st retraction in 16 months.
The research points out that recovery is due to a moderate increase in customer demand, despite challenges such as reduced purchasing power, high financing costs and limited investments. Business confidence remained positive, and the service sector experienced the highest growth growth in 9 months, reflecting cautious optimism among companies.
There was an increase in new business levels in February, although the expansion rate was slower than that observed in 2024. This increase in requests, coupled with favorable projections for service activity, motivated companies to expand their teams. The job growth rate has reached peak since May 2024, suggesting potential strengthening of the sector labor market.
However, companies faced remarkable inflationary pressures, with increasing costs of food, labor, materials, transport and public services. In response, they have raised the prices of services to the highest level since mid -2022, which may have moderated customer demand.
The consumer service segment stood out in February, while the finance and insurance sector recorded retraction. The combination of service sector performance with the advancement of industrial production, which also grew in February, raised the compound PMI from Brazil to 51.2. This indicates a moderate expansion of economic activity in the country.
