Brazil: Manufacturing PMI jumps to four-month high in June
July 1, 2021
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) climbed to 56.4 in June from May's 53.7, marking the best reading in four months. Consequently, the index moved further above the 50-threshold, signaling a faster improvement in business conditions compared to the previous month.
June’s upturn chiefly reflected robust expansions in new orders and production and came despite the ongoing struggle with the second wave of the pandemic. The rise in new business was largely due to upbeat international sales, which rose for the fifth month running. Moreover, output increased at a marked pace in June, while firms raised employment, with the rate of job creation the fastest in seven months. On the price front, input cost inflation continued to climb amid raw material shortages and firms passed on costs to clients, with the output charges rising at one of the quickest rates since data collections began in early-2006. Lastly, business sentiment hit a six-month high in June, as firms were optimistic regarding the 12-month outlook amid hopes of greater vaccine availability and that the pandemic would soon end.
Author: Hanna Andersson, Economist