Brasil PMI Industrial

The S&P Global Brazil Manufacturing PMI fell to 50.4 in August 2024 from 54.0 in July, marking the lowest reading of the year and indicating a significant slowdown in the sector's growth momentum. Rising cost pressures, which reached their highest level since March 2022, and fading demand led manufacturers to reduce production for the first time in 2024. New orders grew at their slowest pace in eight months, with subdued sales in the US and Mercosur partially offset by increased demand from Asia and the Middle East. Despite these challenges, employment rose, supported by strong business confidence and plans for plant expansions, product diversification, and investment. Input buying and inventory levels were curtailed, as firms opted to utilize safety stocks amid worsening supplier performance. Nonetheless, optimism for future output remains high as manufacturers look forward to potential improvements in the economic environment.