The city on the beach in Brazil

Brazil PMI March 2020

Brazil: Manufacturing PMI plunges in March

The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, fell to 48.4 in March from 52.3 in February, marking the sharpest deterioration in operating conditions since February 2017. Consequently, the PMI fell below the 50-threshold signaling an overall worsening in business conditions in the manufacturing sector over the previous month.

The fight to control the Covid-19 pandemic, both globally and domestically, weighed heavily on demand and production in March. New business inflows fell at the steepest rate in over three years, with factory shutdowns and falling customer demand causing clients to cancel orders. Export orders shrank at a marked rate also due to factory closures and delayed projects abroad. Given anemic demand, Covid-19 emergency measures, and concerns over the business outlook, manufacturers reduced production and laid off workers at the strongest rate in over three years.

On the supply-side, ongoing disruptions to global supply chains as a result of the pandemic lead supplier delivery times to lengthen to the greatest extent on record. This resulted in the first rise in manufacturers’ outstanding business since the truck drivers’ protests in June 2018.

On the price front, input cost inflation accelerated sharply in March to the highest level since October 2018, largely due to a stronger U.S. dollar pushing up input prices. In response, good producers raised output prices at the sharpest rate in a year and a half.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest