Brazil: Manufacturing PMI edges down in February
March 2, 2015
The Markit manufacturing Purchasing Managers’ Index (PMI) fell from January’s 50.7 to 49.6 in December. January’s figure had marked the highest reading in one year. As a result, the PMI index is now below the 50-threshold that separates contraction from expansion in business conditions in the manufacturing sector.
According to Markit, February’s figure came on the back of a fall in both output and new orders. Input costs increased, driven largely by the weaker value of the Brazilian real, while employment was relatively unchanged. Markit analysts stated that, “the key feature of the February dataset was the impact of a weakening Brazilian real, which is raising the cost of manufacturing inputs, particularly those priced in dollar terms.”