Brazil Services Activity Loses Growth Momentum In May

(RTTNews) - The Brazilian service sector growth was constrained in May due to stagnation in new orders amid inflationary pressures, survey results published by S&P Global showed on Wednesday.

The seasonally adjusted S&P Global Brazil Services Business Activity Index dropped to 50.4 in May from 52.3 in April. Nonetheless, a score above 50 indicates expansion.

New orders received by Brazilian service providers remained broadly stagnant, coinciding with a sharp increase in selling prices. Despite receding from April, the pace of inflation was the second highest in 15 months. Input price inflation was the highest since February 2025 as the war in the Middle East pushed up fuel and materials costs.

Meanwhile, employment levels increased at the slowest pace in four months. Business confidence faded as price pressures, alongside fierce competition and tough operating conditions, weighed on positive sentiment.

The composite output index dropped to 49.5 in May from 52.4 in April, signaling a renewed and marginal downturn in the Brazilian private sector.