Brazil: Manufacturing PMI drops to nearly one-year low in May
Conditions in Brazil’s manufacturing sector appear to have deteriorated further in May. The manufacturing Purchasing Managers’ Index (PMI) fell from 51.5 to 50.2, the worst reading since June 2018. As a result, the PMI lies only slightly above the crucial 50-threshold, signaling modest expansionary conditions in the manufacturing sector.
May’s print reflected renewed drops in new orders and jobs, as well as slower manufacturing output growth. Survey respondents cited uncertainty, political troubles and weak demand weighing on production in May, and business sentiment deteriorated overall. Meanwhile, a weak real ramped up inflationary prices in the economy.