The Brazilian composite purchasing managers’ index (PMI) increased from 51.9 in September to 53.4 in October, S&P Global reported on Friday (4).
The services-specific PMI rose to 54.0 from 51.9 in the period, the first increase in four months, driven, according to S&P, by new business gains.
“There have been signs of recovery in the Brazilian services sector as we head towards the end of 2022, with demand showing considerable resilience despite another rise in production costs,” said Associate Director Economics at S&P Global Market Intelligence, Pollyanna De Lima.
For Lima, there were mixed trends in prices in October, with a milder increase in the value of inputs in contrast to a recovery in inflation of charges.
“On the one hand, lower energy and fuel prices compared to September led to a reduction in cost pressures. On the other hand, a higher percentage of companies paid their own fees amid recent increases in their expenses being passed on to customers.”
The director assesses that the strong performance of services more than compensated for the weakness of the industry in the month.
“It was also the main source of pressure on prices in the private sector, as product manufacturers signaled lower purchasing costs and factory prices at the beginning of the fourth quarter”, he ponders.
Source: CNN Brasil
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