Brazil: Manufacturing PMI hits over two-year high in March
April 4, 2017
Conditions in Brazil’s manufacturing sector improved notably in March as the Markit manufacturing Purchasing Managers’ Index (PMI) surged to the highest level since February 2015. The index rose from 46.9 in February to 49.6. As a result, the PMI is now just below the 50-threshold that separates contraction from expansion in business conditions in the manufacturing sector.
According to IHS Markit, the improvement reflected the first increases in output and order books in over two years. Stronger demand from abroad boosted new work, but the upturn in conditions has yet to translate into an improved labor market as the pace of job losses was sharp. Meanwhile, price pressures were high, pushed up by rising commodity prices and a weak real.