Brazil: Manufacturing PMI rises in May but remains in contractionary terrain
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) came in at 47.1 in May, up from April’s 44.3. As such, the index remained below the 50.0 no-change threshold, signaling a continued deterioration in manufacturing sector operating conditions from the previous month.
In May, there were ongoing contractions in new orders, new export orders, production, employment and purchasing activity. More positively, supply chains improved—May saw a record shortening of delivery times—and input costs fell. Moreover, business sentiment improved to an eight-month high.
Pollyanna De Lima, economics associate director at S&P Global Market Intelligence, said:
“Amid the turbulent landscape of Brazil’s manufacturing sector, the PMI data for May shed light on the persistent challenges and uncertainties troubling the industry. Many obstacles remained apparent, from lacklustre demand and competitive pressures to elevated borrowing costs and policy uncertainty.”