Brazil: Manufacturing PMI picks up in May
June 1, 2021
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 53.7 in May from April's 52.3. As a result, the index moved further above the 50-threshold, signaling a faster improvement in business conditions compared to the previous month.
May’s reading came on the back of rebounding output and new orders. In addition, new exports rose marginally, while employment increased. On the price front, raw material shortages and a weak currency spurred input cost inflation, which fed through to higher output prices.
On the reading, Pollyanna De Lima, economics associate director at IHS Markit, commented:
“It’s encouraging to see how quickly the manufacturing sector recovered from the recent downturn related to the new wave of Covid-19 cases. Rates of expansion in new orders and production were modest at best, but there was a solid upturn in factory jobs and business optimism. Survey members again hoped that vaccine availability will improve in the coming months, limiting the spread of the disease and fostering output growth. A number of firms plan to launch new products and boost investment.”
Author: Hanna Andersson, Economist