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Brazil Manufacturing Growth Strongest In 3 Months

Brazil's manufacturing sector expanded at the fastest pace in three months as both output and demand improved, survey data from IHS Markit showed on Monday.

The IHS Markit Brazil Manufacturing Purchasing Managers' Index rose to 52.3 in February from 51 in January. A reading above 50 suggests growth in the sector.

The PMI pointed to the strongest improvement in the health of the sector since last November, IHS Markit said.

Consumer and intermediate goods manufacturers logged faster expansions, while the capital goods makers recorded the steepest downturn for over three years.

Production and sales grew at the fastest rate in three month and job creation climbed to a five-month high.

On the cost front, input price inflation was the highest since October 2018 and output price inflation was the sharpest in one-and-a-half years.

Business confidence remained strong as manufacturers expect investment growth, greater client numbers and product diversification to boost output growth in the year ahead.

Companies reported low stock levels at suppliers and delays in the delivery of materials due to the COVID-19 outbreak.

The deterioration in vendor performance was among the sharpest in the 14-year survey history, while stocks of purchases decreased further, IHS Markit said.

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