Brazil composite PMI drops to 49.8 in November

The composite Purchasing Managers’ Index (PMI) in Brazil dropped from 53.4 in October to 49.8 in November, S&P Global reported this Monday (5).

The specific PMI for services fell from 54.0 to 51.6 between October and November, which in seasonally adjusted numbers means the eighteenth month in a row of the indicator in terms of expansion (above 50), however, the slower rate observed in the whole period.

“Service providers indicated that future uncertainty for public policy and the broader economy dampened demand in November,” said S&P Global Market Intelligence Associate Director of Economics, Pollyana De Lima.

For her, the impacts of the presidential elections in Brazil “extravaded from the political field to the economic field”, causing more effect in the industry sector than in the services sector.

“Service sector companies were also divided on their own projections for the future. Around 54% of companies foresee production growth in 2023, with optimism centered on hopes for structural reforms, lower interest rates and contained inflation”, he commented.

The director assesses that services continued to be the main source of inflationary pressures in the private sector, since purchase and sale prices decreased in the industrial sector. “At the consolidated level, input prices rose at the fastest rate in three months, while inflation eased from October onwards,” she adds.