Brazil: Manufacturing PMI eases from May's high in June
July 3, 2017
Conditions in Brazil’s manufacturing sector eased slightly in June, after a strong May. The Markit manufacturing Purchasing Managers’ Index (PMI) fell from a multi-year high of 52.0 in May to 50.5 in June. Despite the fall, the PMI remains above the crucial 50-threshold that separates expansion from contraction in business conditions in the manufacturing sector.
According to IHS Markit, the moderation reflected a softer rise in output and new orders. In addition, buying levels fell and employment dropped. Despite broad gains in the index over the past months, the improvement has yet to translate into the labor market. Price pressures picked up in the month, largely due to a weak real.