Brazil's manufacturing sector growth eased for the fourth successive month in May, survey data released by Markit Economics and HSBC Bank showed Monday.
The seasonally adjusted manufacturing purchasing managers' index (PMI) dropped to a seven-month low of 50.4 in May from 50.8 in April. A reading above 50 suggests expansion, while one below indicates decline. The index recorded decline for the fourth straight month.
New orders received by Brazilian goods producers advanced for the eighth consecutive month as demand remained firm, but the rate of growth eased to a seven-month low. Production at manufacturing firms grew at the slowest pace since October 2012, helped by the increase in new business.
Companies lowered their workforces at the fastest pace in nine months as part of their efforts to reduce costs.
Input prices paid by manufacturers increased for the forty-fifth consecutive month, but the rate of inflation eased to a seven-month low.
Factory gate prices also moved up further during the month, with investment good producers signaling the strongest rise in charges, followed by the intermediate and consumer goods sectors respectively.
For comments and feedback: editorial@rttnews.com