Brazil: Manufacturing PMI eases in April; conditions still improve
May 2, 2022
The S&P Global Manufacturing Purchasing Managers' Index (PMI) came in at 51.8 in April, down from March's 52.3. As such, the index remained above the 50.0 no-change mark, pointing to a continued, albeit moderating, improvement in business conditions from the previous month.
April’s moderation was largely driven by global raw material shortages and mounting price pressures. Additionally, heightened uncertainty stemming from the war in Ukraine dragged on sales, dampening external demand and exports in turn. More positively, although they remained elevated, cost inflation and output prices increased at softer paces than in March, while supply chain disruptions also eased somewhat in April. Furthermore, firms’ confidence about the production outlook picked up in April, amid expectations of improvements in domestic demand and investment plans, and stable conditions after the presidential elections in October. This increased optimism led to higher employment levels in turn, with the job creation rate hitting a six-month high in April.
Author: Marta Casanovas , Economist