The city on the beach in Brazil

Brazil PMI June 2020

Brazil: Manufacturing PMI returns to expansion in June

The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, increased to 51.6 in June from 38.3 in May. Thus, the PMI climbed above the 50-threshold for the first time since February, signaling an improvement in business conditions in the manufacturing sector.

Lifting of coronavirus-related restrictions and social-distancing measures were largely behind this month’s upturn. Both production and new orders returned to expansion as firms resumed activity and demand firmed up. However, export sales continued to shrink, indicating that the improvement was domestic led. Moreover, although output and new work rebounded, businesses continued to shed jobs and cut purchasing activity in a bid to lower costs, yet at a slower pace compared to May. On the price front, input cost inflation rose at the sharpest pace in nearly two years largely due to a stronger U.S. dollar, which also forced manufacturers to raise output charges at the fastest rate since September 2018. Lastly, business sentiment in the manufacturing sector improved to the highest level since February amid more optimistic projections for demand and sales in the year ahead.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest X Download Fullscreen