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Brazil PMI August 2022

Brazil: Conditions improve at milder pace in August

The S&P Global Manufacturing Purchasing Managers’ Index (PMI) fell to a four-month low of 51.9 in August from July’s 54.0. As a result, the index remained above the 50.0 no-change threshold, pointing to a continued, albeit moderating, improvement in private sector business conditions from the previous month.

August’s slowdown was chiefly due to moderations in new orders and output, with both expanding at the softest paces in six months. With regard to prices, input costs and selling charges rose at weaker paces, as both slowed to over two-year lows in the month. Moreover, delivery times lengthened less in August thanks to easing supply chain crunches in the month. Lastly, employment grew at the weakest rate in four months, despite business sentiment rising to its highest level since end-2020 amid improving expectations for sales in the coming year.

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