Brazil: Manufacturing PMI edges up in July, but remains in contraction territory
August 1, 2014
The Markit manufacturing Purchasing Managers’ Index (PMI) increased to 49.1 in July, which was up from the 48.7 tallied in June. July’s reading marked the highest print since April of this year. However, despite the increase, the PMI index is still below the 50 threshold that separates expansion from contraction in business conditions in the manufacturing sector.
According to Markit, July’s figure marked the fourth consecutive month of contraction in the manufacturing sector, which reflects the overall deterioration of domestic demand. In addition, the disruptive effects of the FIFA World Cup also affected the PMI reading. There were fewer new orders and less overseas business activity in July compared to June, when most of the Cup’s activities took place.