Brazil: Services PMI Falls to Near-Stagnation.

Brazil’s S&P Global Services PMI fell to 50.4 in May 2026 from 52.3 in April, moving closer to the 50-point threshold and signaling only marginal expansion in the sector. The survey showed that new business was broadly stagnant during the month, with transport, information and communication the only monitored segment to record higher output. The slowdown in demand coincided with elevated price pressures, as output charge inflation remained the second-highest in 15 months despite easing from April. Input costs rose at the fastest pace since February 2025, with consumer services facing the strongest cost pressures. Rising operating expenses and fragile demand also weighed on hiring activity, with employment growth slowing to the weakest pace in the current four-month expansion. Meanwhile, high inflation, intense competition, and challenging business conditions dampened confidence among service providers.