Brazil: Manufacturing PMI hits over one-year high in February
March 2, 2017
After starting the year on a low note, in February the Markit manufacturing Purchasing Managers’ Index (PMI) rose to the highest level since January 2016. The index rose from 44.0 in January to 46.9. The PMI still 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, the improvement reflected milder declines in new orders, production and employment. However, despite the moderation, sharp declines were still recorded across the board and concerns over lack of capital led firms to reduce buying levels. Higher commodities prices pushed inflation up and caused firms to raise selling prices.