Brazil: Manufacturing PMI surges to seven-month high in September
Conditions in Brazil’s manufacturing sector continued improving in September. The manufacturing Purchasing Managers’ Index (PMI) came in at a seven-month high of 53.4, up from August’s over one-year low of 52.5. As a result, the PMI edged further above the crucial 50-threshold, signaling a faster pace of expansion in the manufacturing sector.
September’s improvement came on the back of surging new orders and increasing production, both of which rose at the fastest rates in one-and-a-half years amid robust domestic demand. Furthermore, in the same month, firms raised their staffing levels at the sharpest rate in seven months and increased their input buying, while inventories dropped for the first time since January. Meanwhile, input price inflation picked up in September, largely due to currency weakness. Lastly, economic sentiment remained upbeat, although it softened somewhat from August.