Brazil: Manufacturing PMI hits five-month high in July
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) came in at 56.7 in July, up from June’s 56.4 and marking the best reading since February. As such, the index moved further above the 50-threshold, signaling a faster improvement in business conditions compared to the previous month.
July’s upturn came on the back of rising production and new orders. Output expanded at the fastest rate in three months, while factory orders increased at the quickest pace in seven months amid stronger demand, particularly on the domestic front. Moreover, due to more upbeat sales growth, firms raised staff levels, albeit at a softer rate than in June. On the price front, input cost inflation remained elevated in July due to ongoing supply shortages; however, prices rose at the softest rate in a year. Meanwhile, output charge inflation also eased, hitting a six-month low. Lastly, although sentiment among firms fell to a four-month low, confidence remained optimistic overall as stronger demand and higher vaccine coverage should underpin output in the coming 12-month period.