In a surprising turn, Brazil’s industrial sector grew substantially in April 2024, with the PMI reaching 51.2.
This is the second consecutive month it has remained above the crucial 50-point mark, signaling ongoing expansion.
This growth, as reported by the National Confederation of Industry (CNI), marks a strong start to the second quarter of the year.
Notably, April, typically a slower month for industrial production, saw significant activity this year.
Large companies led this surge, with their index reaching 53.5 points.
Meanwhile, medium-sized companies just crossed into growth with 50.1 points, but small companies saw a decrease to 47.6 points.
Employment in the sector showed stability, with the employment index slightly over the threshold at 50.1 points.
This stability is noteworthy as April often sees a decrease in industrial jobs.
Capacity utilization also increased to 70%, which is three percentage points higher than usual for April.
This suggests that industrial facilities are being utilized more intensively.
Inventory levels maintained perfect balance, with the stock level index steady at 50 points.
This alignment between planned and actual stock levels has been consistent over five periods.
Despite some declines, expectations for raw material purchases and demand in May were still positive.
The index for raw material purchasing stood at 54.1, and for demand at 56.1.
Investment intentions remained strong, with the index showing a robust sentiment at 56.9 points, well above the historical average of 51.9 points.
This indicates ongoing confidence in capital investments among industrialists.
These indicators from the CNI survey suggest that Brazil’s industrial sector is not just recovering but adapting to new economic conditions.
It maintains employment stability and manages resources efficiently, signaling a positive trend for sustained growth in the broader economy.
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