Brazil: Manufacturing PMI rises from multi-year low
October 1, 2015
The Markit manufacturing Purchasing Managers’ Index (PMI) rose from August’s 45.8, which had marked the lowest reading since September 2011, to 47.0 in September. Despite the increase, the PMI index still lies below the 50-threshold that separates contraction from expansion in business conditions in the manufacturing sector.
According to Markit, September’s figure came on the back of a more moderate contraction in new orders and output. However, despite falling a softer rate the contractions were still pronounced. Input cost inflation eased in September suggesting that inflationary pressures are abating. However, manufacturers continued to cut jobs and the employment level fell in September, although the decline was moderate. Markit analysts added that, “the outlook still looks cloudy as underlying domestic issues suggest the country’s economy won’t be turning a corner in the near future. Workforce numbers have been trimmed in each month since March, with job shedding in September easing slightly from August’s six-year peak.”