Brazil: Manufacturing PMI inches up in July, but remains entrenched in contractionary territory
August 3, 2015
The Markit manufacturing Purchasing Managers’ Index (PMI) inched up from June’s 46.5 to 47.2 in July, which marked a five-month high. Despite the increase, the PMI index still remains below the 50-threshold that separates contraction from expansion in business conditions in the manufacturing sector.
According to Markit, July’s figure came on the back of a softer contraction in output and new orders and a modest decrease in employment. New work and production fell at the most moderate rate since February, although survey participants cited tough economic conditions overall. Employment fell for the fifth month in a row; however, the rate of decrease was broadly unchanged from June’s result. Regarding prices, inflationary pressures were moderate and subdued in the context of recent data. Markit analysts added that, “Brazil’s manufacturing recession showed signs of moderating during July, with output and new orders dropping at softer rates. Nonetheless, the latest PMI reading was among the lowest since 2011, reflecting a slumping economy.”