RIO DE JANEIRO, BRAZIL – Brazil’s Consolidated Manufacturing PMI rose from 54.6 in June to 55.2 in July, the strongest expansion rate in nine months, with faster rates of increase in the manufacturing and services sectors, IHS Markit reported.
According to the consultancy, the easing of some local restrictions against Covid-19 stimulated demand for Brazilian products and services in July, strengthening output growth.
New orders received by private sector companies also rose at the fastest pace since October last year. The fastest rise was seen in manufacturing, although growth also accelerated in the services economy.
At 54.4 in July, up from 53.9 in June, Brazil’s IHS Markit Services Business Activity Index highlighted a second successive rise in output, the fastest for eight-and-a-half years. According to survey participants, the report said the recovery stemmed from new customer wins, strengthening demand, and lifting some local restrictions.
“Brazil’s services economy maintained its growth trajectory in July, with a strong recovery in new business underpinning the largest expansion in output since early 2013,” the document says. “Firms also benefited from a series-record increase in international sales. Improved demand conditions led to the fastest joint accumulation of outstanding business volumes ever recorded, stimulating job creation. Inflationary pressures eased in July. Input costs and output inflation rose at slower but still elevated rates.”