Brazil Manufacturing Activity Nears Stabilization

(RTTNews) - The Brazilian manufacturing economy remained broadly stagnant in April amid renewed decline in new orders, survey data from S&P Global showed on Friday.

The purchasing managers' index, or PMI, for the manufacturing sector dropped to a 16-month low of 50.3 in April from 51.8 in March. However, a score above 50 indicates expansion.

New orders fell for the first time in sixteen months due to demand weakness in the domestic and international markets. Export business also showed a renewed decline in April, reflecting lower demand from Mercosur and the US.

Output growth was slowest in three months, linked to order cancellations, subdued sales, and skill shortages.

Lower new work inflows and cost-cutting efforts caused the slowdown in the rate of job creation to the weakest in four months. Consequently, goods producers opted to reduce purchasing activity.

On the price front, input price inflation remained sharp in April despite easing to an 11-month low. The overall elevated inflation was driven by higher prices for bearings, freight, natural gas, and steel, as well as lower fees for oil and textiles. Selling price inflation also receded to its lowest mark since March 2024.

Looking ahead, confidence regarding future output reached its lowest level in five years amid growing concerns about US tariff policy and domestic economic conditions.