Brazil: Manufacturing PMI falls to one-year low in July
August 1, 2019
Conditions in Brazil’s manufacturing sector appear to have deteriorated at the start of Q3. The manufacturing Purchasing Managers’ Index (PMI) fell from 51.0 in June to 49.9 in July, the worst reading since June 2018. As a result, the PMI now lies below the crucial 50-threshold, signaling contractionary conditions in the manufacturing sector.
July’s downturn reflect the first fall in output in one year and the sharpest drop in jobs reported since mid-2017 as weak demand took a toll on firms’ health. Political and economic concerns dampened business sentiment, which dropped to a near two-year low in the month. Meanwhile, input price inflation softened to a six-month low.