Brazil expands at fastest rate since 2022 on healthy manufacturing, services

SAO PAULO (ICIS)–Brazil’s private sector posted in October the fastest rate of expansion since mid-2022, analysts at S&P Global said on Tuesday.

S&P’s composite PMI index stood in October at a very healthy 55.6 points, up from September’s 55.2 points. Any reading above 50.0 points shows economic expansion.

S&P compiles the composite PMI index putting together the manufacturing and services indices, according to each’s weight in the economy.

Last week, S&P said Brazil’s petrochemicals-intensive manufacturing sectors had performed well in October thanks to a healthy order book, both in the domestic market as well as abroad, with export orders rising.

This week, the analysts said the services sectors – which are predominant in the economy – had also posted healthy performance in October, with the index at 56.2 points, up from 55.8 points in September.

COMPOSITE PMI
“Stronger increases in both factory production and services activity fueled growth of Brazilian private sector output … The main determinant of growth was a substantial improvement in demand for goods and services. Aggregate sales increased at the quickest pace in 28 months, spurred by a faster increase in the service economy,” said S&P.

“Less encouragingly, employment data showed the joint weakest rise in private sector jobs since October 2023. Manufacturers hired staff at the slowest pace for 10 months, while cost considerations at service providers led to a broad stagnation of recruitment efforts. Input costs at the composite level rose at the weakest rate in four months, reflecting a notable slowdown in the manufacturing industry.”

BRAZIL MANUFACTURING PMI

	October	September	August	July	June	May	April	March	February	January	December 2023	November
PMI index	52.9	53.2	50.4	54.0	52.5	52.1	55.9	53.6	54.1	52.8	48.4	49.4

Source: S&P Global