Manufacturing PMI for Brazil, to 56.5 points

Bayanalysis - Brazil's IHS Market Manufacturing PMI fell to 56.5 in January 2021, down from 61.5 in December of last year, indicating the smallest expansion in the sector since last June.

New orders and production continued to rise strongly, albeit at weaker rates, while Brazilian export orders remained broadly sluggish. At the same time.

The rate of job generation fell to the weakest in the current 7-month expansion series as companies became more cautious about their expenditures.

Purchasing activity was the weakest in 7 months while stocks of purchases declined amid reports of supply shortages and delayed delivery.

On the price front, the rate of input inflation has remained more acute than at any time before the Corona pandemic, "Covid 19", amid reports of a shortage of raw materials around the world.

As a result, Brazilian commodity producers continued to raise their tariffs.

The positive feelings were supported by the launch of Covid 19 vaccines, "Corona", and the launch of new products, in addition to marketing efforts.

It is noteworthy that the manufacturing activity in Brazil reached its lowest level in April 2020 at 36 points, while the maximum it reached over the various years was 66.7 points.

The PMI is an economic indicator that provides an accurate overview of operating conditions, business conditions and employment in the non-oil private sector.

The PMI is based on 5 main pillars which are new orders, inventory levels, production, supplier delivery volume, and employment and work environment.

The PMI aims to provide a clear picture of current business conditions.