Brazil: Manufacturing PMI starts 2017 on low note
February 1, 2017
The Markit manufacturing Purchasing Managers’ Index (PMI) for Brazil fell to the lowest level in 7 months in January. The index decreased from 45.2 in December to 44.0. The PMI remains below the 50-threshold that separates contraction from expansion in business conditions in the manufacturing sector as the Brazilian economy lingers in a deep recession.
According to IHS Markit, the downturn was driven by a broad-based decline in conditions. New orders, output and buying levels all declined against a backdrop of economic crisis. Commenting on the result, IHS Markit analysts said that, “while recent cuts to the benchmark rate are expected to support the economy, future monetary policy decisions will likely be constrained by a pick-up in inflationary pressures, with PMI price indicators on the rise in January.”