The city on the beach in Brazil

Brazil PMI December 2020

Brazil: Manufacturing PMI drops in December, but remains in positive territory

The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, dropped to 61.5 in December from November’s 64.0, marking the lowest reading since July. That said, the index remained well above the 50-threshold, signaling an improvement in business conditions in the Brazilian manufacturing sector.

December’s reading largely came on the back of increasing production and new orders, albeit at a softer clip than in November. As a result, firms raised their staff levels for the sixth month straight, although the pace of job creation softened from the previous month. On the price front, input costs rose due to currency weakness against the U.S. dollar and raw material shortages, which led to higher output charges as firms passed on their costs to customers. Lastly, sentiment among firms remained positive in the final month of the year as firms were optimistic of the outlook for production in the coming 12 months amid hopes of the Covid-19 pandemic ending.

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