Brazil: Manufacturing PMI drops to 15-month low in June
Conditions in Brazil’s manufacturing sector weakened in June according to the IHS Markit. The manufacturing Purchasing Managers’ Index (PMI) decreased from 50.7 in May to 49.8 in June, the worst result since March 2017. As a result, the PMI still lies below the crucial 50-threshold and in contractionary territory.
The fall in the index was attributed to declines in new orders and output, as the truckers’ strike at the start of the month caused widespread disruptions to economic activity. Shortages of basic materials caused a rise in outstanding business and input cost inflation climbed due to scarcity of goods. In addition, business confidence fell to an eight-month low.