Brazil: Manufacturing PMI drops to lowest level in over four years
May 4, 2015
The Markit manufacturing Purchasing Managers’ Index (PMI) fell from March’s 46.2 to 46.0 in April, thus dropping to the lowest level in over four years. As a result, the PMI index is now further below the 50-threshold that separates contraction from expansion in business conditions in the manufacturing sector.
According to Markit, April’s figure came on the back of a steeper decrease in output, new business and buying levels. Moreover, production contracted at the steepest rate since March 2009 and job cuts were seen for the second consecutive month. Markit analysts stated that, “[t]e Brazilian manufacturing economy appears to be diving into recession, according to latest PMI data. Falling domestic and external demand led to further reductions in output in April, while the weak real pushed up input cost inflation by raising the cost of imported raw materials.”