Brazil: Manufacturing PMI ends 2016 on a low note
January 3, 2017
The Markit manufacturing Purchasing Managers’ Index (PMI) fell in December, ending the year at the lowest level seen in 6 months. The index decreased from November’s 46.2 to 45.2 in December. The PMI remains below the 50-threshold that separates contraction from expansion in business conditions in the manufacturing sector as the Brazilian economy lingers in a deep recession.
According to IHS Markit, fewer new orders were reported and firms reduced output in December. Steep declines were also seen in buying levels and employment. Meanwhile, cost inflation rose to a four-month high. Commenting on the result, IHS Markit analysts said that, “the outlook heading into 2017 appears gloomy amid various significant headwinds facing the Brazilian economy, including deteriorating labour market conditions, weak consumption, budget cuts, political disturbance and subdued demand in external markets.”