Brazil: Manufacturing PMI falls in April
Conditions in Brazil’s manufacturing sector weakened slightly in April according to the IHS Markit. The manufacturing Purchasing Managers’ Index (PMI) fell from 53.4 in March to 52.3 in April. March’s result had marked the best reading since November 2017. Despite the fall, the PMI still lies above the crucial 50-threshold that separates expansion from contraction in business conditions in the manufacturing sector, where it has been for nine consecutive months.
The fall in the index was attributed to weaker growth in employment, new orders and output. The slowdown in new orders was driven by a challenging economic environment at home, while orders from abroad picked up pace likely thanks to a weak real. Currency weakness also drove rising price pressures and input cost inflation rose to a four-month high in April. Meanwhile, manufacturers were strongly optimistic about the next 12 months in April, a bright spot in the survey.