Brazil PMI May 2019

Brazil

Brazil: Manufacturing PMI drops to nearly one-year low in May

June 3, 2019

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.

The analysts surveyed by FocusEconomics for the LatinFocus Consensus Forecast see industrial production growing 1.5% in 2019, which is unchanged from last month’s estimate. In 2020, industrial output is expected to grow 3.1%.


Author: Angela Bouzanis, Lead Economist

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Brazil PMI May 2019

Note: Markit Brazil Purchasing Managers’ Index (PMI). A reading above 50 indicates an expansion in business activity while a value below 50 points to a contraction.
Source: IHS Markit.


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