Brazil: Manufacturing PMI ticks down in June; conditions still improve
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) came in at 54.1 in June, down from May’s 54.2. As a result, the index remained well above the 50.0 no-change mark, pointing to a softer improvement in business conditions from the previous month.
June’s marginal slowdown was due to new business and output expanding at slightly softer paces than in May, as inflation exerted pressure on global demand. Consequently, new export orders declined again in June—but at the softest pace since March. That said, overall demand continued to improve, which prompted firms to onboard more staff for the fourth consecutive month. The job creation rate in June was the strongest since October 2021. With regard to costs, energy price volatility, material shortages, a strong U.S. dollar, the war in Ukraine and export restrictions led to a strong rise in purchasing prices. Consequently, output charges were passed on to consumers. Meanwhile, firms noted that supply chain disruptions intensified in June and, as such, firms’ optimism dropped to a three-month low.