Brazil: Manufacturing PMI hits eight-month high in November

Conditions in Brazil’s manufacturing sector improved notably in November. The manufacturing Purchasing Managers’ Index (PMI) rose to 52.7 from October’s 51.1 and marked the best result in eight months. The PMI lies above the crucial 50-threshold and in expansionary territory.

The uptick was driven by faster growth in new business and output. Notably, new orders from abroad returned to growth after having fallen in September and October. In addition, business sentiment hit a record high and companies took on staff in November. Meanwhile, input cost inflation fell to an over one-year low, thanks in part to an improved performance of the real.

Brazil Industrial Production Forecast

The analysts surveyed by FocusEconomics for this month’s LatinFocus Consensus Forecast see industrial production growing 3.6% in 2019, which is unchanged from last month's estimate. In 2020, industrial output is expected to grow 3.3%.