Brazil: Manufacturing PMI rises again in February
Conditions in Brazil’s manufacturing sector became more favorable in February. The manufacturing Purchasing Managers’ Index (PMI) rose to an 11-month high of 53.4, from 52.7 in January. The PMI thus moved further above the crucial 50-threshold, which signals expansionary conditions.
February’s print reflected a marked acceleration in output and new orders, thanks to buoyant domestic demand. Robust domestic demand continued to fuel an expansion in new business, while orders from overseas markets remained weak owing to a more challenging terrain for global trade. Improved sales and an upbeat outlook prompted firms to create jobs at the strongest pace in over eight years. On the price front, input cost inflation picked up from the previous month due to higher raw material costs but remained mild thanks to strengthening in the real. Overall, business sentiment remained optimistic on the improved dynamics and on expectations of more favorable tax policies going forward.