Brazil PMI October 2019

Brazil

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.

The analysts surveyed by FocusEconomics for this month’s LatinFocus Consensus Forecast see industrial production growing 2.3% in 2020, which is up 0.2 percentage points from last month's estimate. In 2020, industrial output is expected to grow 2.7%.


Author: Angela Bouzanis, Lead Economist

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