Brazil: Conditions deteriorate at sharpest pace in 30 months in November
The S&P Global Manufacturing Purchasing Managers Index (PMI) declined for a sixth consecutive month in November, plunging to 44.3, the lowest reading since May 2020. Novembers reading followed Octobers 50.8 and fell below the 50.0 no-change threshold for the first time since February 2022. This points to a sharp deterioration in manufacturing business conditions from the prior month.
Novembers downturn was chiefly due to subdued underlying demand and elevated uncertainty weighing on new business, which declined at the quickest pace since May 2020. New export orders also fell amid external demand worsening by the most significant degree in 30 months. This, in turn, led to the scaling back of output in November. As such, employment fell for the first time in nine months. Meanwhile, backlogs were reduced at the quickest pace in nearly 14 years. Turning to prices, weaker demand and discounts amid better raw material supply led to the decline in input prices for a second consecutive month. The savings were passed on to clients, who saw output charges reduced. Lastly, firms remained optimistic over the outlook for the coming 12 months, although sentiment slipped to a 13-month low in November.