Brazil: Manufacturing PMI rises in June from May's multi-year low
July 1, 2015
The Markit manufacturing Purchasing Managers’ Index (PMI) inched up from May’s 45.9 to 46.5 in June. May’s result had marked the lowest level since September 2011. Despite the increase, the PMI index still remains below the 50-threshold that separates contraction from expansion in business conditions in the manufacturing sector.
According to Markit, June’s figure came on the back of a softer contraction in new export orders, which was negligible overall, and a modest decrease in employment. However, new orders and output both contracted at a steep pace in June. Regarding prices, inflationary pressures softened and inflation tallied the lowest reading this year. Markit analysts stated that, “purchasing managers reported a fifth successive monthly contraction in output at the end of Q2, with deteriorating economic conditions and rising costs weighing on domestic demand. Recent months have seen production drop at the fastest pace since the financial crisis, resulting in sharp cutbacks in employee headcounts as manufacturers struggled to secure new contracts.”