Brazil PMI June 2016

Brazil

Brazil: Manufacturing PMI improves but remains in contraction territory

July 1, 2016

The Markit manufacturing Purchasing Managers’ Index (PMI) rose in June. The index increased from May’s 41.6—its worst result in over seven years—to 43.2 in June. For the seventeenth consecutive month, the PMI is far below the 50-threshold that separates contraction from expansion in business conditions in the manufacturing sector amid a deep recession in the Brazilian economy.

According to Markit, June’s relative improvement came on the back of a less pronounced contraction in both output and new orders. However, overall PMI data remains bleak as the country’s recession continues. Employment declined at the fastest pace on record while input costs continued to climb. Commenting on the result, Markit analysts added that, “the latest results showed another record contraction in employment levels. Some domestic improvements will be needed before any serious talk of a recovery can begin.”


Author:, Economist

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Brazil PMI June 2016 0

Note: Markit HSBC Brazil Purchasing Managers’ Index (PMI). A reading above 50 indicates an expansion in business activity while a value below 50 points to a contraction.
Source: HSBC and Markit.


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