Brazil Manufacturing Sector Contracts Further In August

(RTTNews) - Activity in Brazil's manufacturing sector decreased further in August, but at a slightly slower rate than in the previous month, survey data released by Markit Economics and HSBC Bank showed Monday.

The seasonally adjusted purchasing managers' index (PMI) for the manufacturing sector was at 49.4 in August, slightly higher than July's reading of 48.5. PMI readings below 50 suggest contraction of the sector, while those above signal growth.

New orders placed with goods producers decreased for the second successive month in August, but at a slightly slower rate than in the previous month.

Reflecting the fall in new business, production at Brazilian factories also fell for for the second month in a row. Decreases were recorded in both the investment and intermediate goods sectors, while consumer goods producers continued to signal growth.

Responding to the decline in activity, firms lowered their workforces for the fifth successive month, with losses being recorded across all categories.

Input prices paid by manufacturers increased further in August, and at the sharpest rate in almost five years. Consequently, output prices also increased, and inflation rate remained robust.