Brazil’s Factory Downturn Deepens as Tariffs, High Rates and Weak Demand Converge

2026-02-02 - 18:55

Key Points Brazil’s manufacturing PMI fell to 47.0 in January, the worst in four months, extending a contraction streak that began in mid-2025 as orders collapse at home and abroad. U.S. tariffs of up to 50% on Brazilian goods continue to suppress exports, with manufacturers reporting suspended contracts from American clients. Despite the gloom, business