Brazil’s manufacturing activity expanded at the weakest pace in the current seven-month sequence of growth, as output and new orders rose at softer rates, survey data from S&P Global showed on Monday.
The purchasing manager’s index for the manufacturing sector dropped to 51.1 in September from 51.9 in August. However, a reading above 50 suggests expansion in the sector.
New orders increased at the slowest pace in seven months in September, and the growth was curbed by reduced purchasing power among clients, automotive sector weakness, and subdued retail sales.
In September, new export orders were restricted by weak global demand. Manufactures scaled up production in restocking efforts.
The weakness in demand for inputs as well as finished goods helped curtail inflation as seen by softer increases in both input costs and output charges.
The rate of job creation in the sector was marginal in September.
Looking ahead, goods producers in Brazil remained optimistic about production for the year ahead.
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