Brazil: Manufacturing PMI rises into expansionary territory in July
Conditions in Brazil’s manufacturing sector improved in July, recovering after the truckers strike dented economic momentum in June. The manufacturing Purchasing Managers’ Index (PMI) rose from 49.8 in June, the worst result since March 2017, to 50.5 in July. As a result, the PMI lies above the crucial 50-threshold and in expansionary territory.
The rebound in the index was attributed to renewed growth in output, new orders and employment. That said, the upturn in new orders was modest and constrained by falling orders from abroad. Meanwhile, business confidence dipped to a nine-month low amid concerns over the political and economic environment. Regarding inflation, the depreciation of the real caused price pressures to rise sharply in July.