Brazil: Manufacturing PMI rises in February
March 6, 2018
Conditions in Brazil’s manufacturing sector strengthened in February according to the IHS Markit manufacturing Purchasing Managers’ Index (PMI), which rose from 51.2 in January to 53.2. As a result, the PMI moved further above the crucial 50-threshold that separates expansion from contraction in business conditions in the manufacturing sector, where it has been for seven consecutive months.
The rise in the index was attributed to an increase in new orders from domestic clients and the strongest pace of job creation in nearly seven years. In addition, output growth accelerated on the back of stronger domestic demand and improved expectations of future client demand, which more than offset weak overseas orders. Regarding prices, input cost inflation eased to a four-month low.
Brazil Industrial Production Forecast
The analysts surveyed by FocusEconomics for this month’s LatinFocus Consensus Forecast see industrial production growing 3.8% in 2018, which is unchanged from last month's estimate. In 2019, industrial output is expected to grow 3.7%.