Financial News: Brazil Factory Activity Contracts In May

Brazil Factory Activity Contracts In May

06/02/2025 - 10:27:00 (RTTNews)

(RTTNews) - The Brazilian manufacturing economy deteriorated for the first time in more than two years in May amid demand retrenchment, survey data from S&P Global showed on Monday.

The purchasing managers' index, or PMI, for the manufacturing sector dropped to a 17-month low of 49.4 in May from 50.3 in April.

Any score below 50 indicates contraction. Moreover, this was the first downturn since the end of 2023.

The renewed decline in May was due to subdued demand conditions. Output fell at the fastest pace since July 2023, while new orders fell at a moderate pace.

On the price front, input price inflation eased to a 14-month low as an appreciation of the Brazilian real against the US dollar and a greater supply of Chinese products curbed cost pressures. As a result, and along with fierce competition and a shrinking market, selling price inflation softened to the lowest since March 2024.

Looking ahead, firms remained confident about output expectations, with the positive sentiment rising from April's five-year low to its highest in nine months.

Strong growth outlook, coupled with the scheduled launch of new products, underpinned job creation, and the rate of employment was the quickest in three months.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

U.S. Consumer Sentiment Improves Slightly More Than Previously Estimated In June (38 min(s), 51 sec(s) ago)
(RTTNews) - A report released by the University of Michigan on Friday showed consumer sentiment in ...Full Story»

U.S. Consumer Prices Inch Up In Line With Expectations But Core Price Growth Exceeds Estimates (14 min(s), 51 sec(s) ago)
(RTTNews) - While the Commerce Department released a closely watched report on Friday showing cons ...Full Story»

Brazil Jobless Rate Falls To 6.2% (10 min(s), 51 sec(s) ago)
(RTTNews) - Brazil's unemployment rate decreased in the three months ending in May, figures fr ...Full Story»

Turkish Economic Confidence Steady At 96.7 (51 min(s), 51 sec(s) ago)
(RTTNews) - Turkey's economic sentiment remained stable in June after rising marginally in the ...Full Story»

Iceland Inflation Rises To 4.2% (18 min(s), 51 sec(s) ago)
(RTTNews) - Consumer price inflation in Iceland accelerated in June after easing in the previous m ...Full Story»

Eurozone Economic Sentiment Falls Unexpectedly (08 min(s), 51 sec(s) ago)
(RTTNews) - Eurozone economic sentiment weakened unexpectedly in June primarily driven by reduced ...Full Story»

Belgium Inflation Rises To 2.15% (52 min(s), 51 sec(s) ago)
(RTTNews) - Belgium's consumer price inflation rose for the first time in five months in June ...Full Story»

U.S. Consumer Prices Inch Up 0.1% In May, In Line With Estimates (47 min(s), 51 sec(s) ago)
(RTTNews) - The Commerce Department released a closely watched report on Friday showing consumer p ...Full Story»