Brazil: Manufacturing PMI drops in October
November 4, 2019
Conditions in Brazil’s manufacturing sector deteriorated in October, although still remained largely upbeat overall. The manufacturing Purchasing Managers’ Index (PMI) fell to 52.2 in October, from September’s seven-month high of 53.4. Despite the fall, the PMI stayed above the crucial 50-threshold, signaling an expansion in the manufacturing sector.
October’s result reflected softer, yet still solid, growth in new orders and production. Firms reported a third consecutive month of output growth and businesses remained optimistic about future growth. That said, orders from abroad contracted again, partly reflecting weakness in neighboring Argentina. Meanwhile, cost burdens rose in October, partly linked to weakness in the real.