Brazil Manufacturing Growth Eases In March

(RTTNews) - The Brazilian manufacturing sector expanded at a softer pace in March as new orders and employment increased at weaker rates, survey data from S&P Global showed on Tuesday.

The purchasing managers' index, or PMI, for the manufacturing sector dropped to 51.8 in March from 53.0 in February. However, a score above 50 indicates expansion.

Factory production increased for the sixth time in seven months, spurred by healthy demand conditions as new orders increased for the fifteenth successive month.

New business from international clients grew for the first time in five months amid more demand from other Latin American nations, the EU, and the US.

On the price front, input prices continued to increase sharply as unfavorable exchange rate movements and supplier speculation reportedly drove up foodstuff, chemical, electronic component, metal, plastic, and textile costs. Nonetheless, the rate of inflation eased to the slowest this year so far. Similarly, output prices rose at the weakest rate since May 2024.

Employment levels increased slightly in March, while shortages of materials at vendors, slow logistics, and sea transportation issues reportedly caused delivery delays.

Looking ahead, Brazilian manufacturers expressed optimism regarding output expectations over the next year amid hopes of improvements in sales and greater investment, which, coupled with planned acquisitions, underpinned upbeat projections for production.