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Brazil PMI April 2019

Brazil: Manufacturing PMI drops to six-month low in April

Conditions in Brazil’s manufacturing sector appear to have deteriorated in April. The manufacturing Purchasing Managers’ Index (PMI) fell from 52.8 in March to 51.5, the worst reading in six months. Despite the drop, the PMI is still above the crucial 50-threshold, signaling expansionary conditions.

April’s print reflected slower growth in new orders, output and employment. Orders from abroad dropped for the fifth consecutive month and jobs were added at a subdued pace. On the price front, input cost inflation jumped amid a weaker real, while selling price inflation moderated. On a brighter note, manufacturers were optimistic regarding the future economic situation, reporting the second highest confidence level recorded in the series’ history.

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