Brazil’s industrial PMI reaches 52.8 in January, the highest level in 18 months

Brazil’s industrial PMI reaches 52.8 in January, the highest level in 18 months
Brazil’s industrial PMI reaches 52.8 in January, the highest level in 18 months
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According to S&P Global’s survey of purchasing managers, increased customer activity, combined with improved demand conditions, has led to an acceleration in factory orders in early 2024.

Brazil’s industrial purchasing managers index (PMI) reached a value of 52.8 in January, the highest in 18 months, according to data from the S&P Global survey released this Thursday (1). It was also the first time in five months that the indicator exceeded the average level of 50.0, which separates the contraction from the expansion of activity.

According to the research, the increase in customer activity, combined with better demand conditions, led to an acceleration in orders to factories at the beginning of 2024.

S&P Global comments in a note that while supply chain pressures have intensified, in part due to tensions in the Red Sea, input cost inflation has slowed to one of the weakest rates seen in nearly ten years.

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Although the indicator was, in general, positive in the month, Pollyanna De Lima, associate director of Economics at S&P Global Market Intelligence, considered in a note that there remained evidence of a surplus capacity among Brazilian producers of goods, as outstanding deal volumes fell further. “It’s clear that companies’ ongoing recruitment efforts have helped keep backlogs under control.”

The article is in Portuguese

Brazil

Tags: Brazils industrial PMI reaches January highest level months

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