Brazil: Manufacturing PMI rises to nearly seven-year high in November
December 1, 2017
Conditions in Brazil’s manufacturing sector improved in November, reaffirming that the economic recovery is gaining steam. The Markit manufacturing Purchasing Managers’ Index (PMI) rose from October’s 51.2 to 53.5, the best reading in 81-months. As a result, the PMI lies further above the crucial 50-threshold that separates expansion from contraction in business conditions in the manufacturing sector.
According to IHS Markit, the improvement in the manufacturing sector was underpinned by a strong rise in new orders, which led to increased output. Firms also added jobs for a second consecutive month, however, the rate of job creation was moderate overall. Higher prices for commodities led to a surge in cost inflation in November, while business sentiment was upbeat thanks to the improving economic backdrop and new client wins.