Brazil’s PMI moved back below 50, falling by 1.8% m/m to 49.5 in October, after increasing by 1.82% m/m in September. The index is 30% above the low of 38.1 reached in January 2009, but 14.4% below the high of 57.8 printed in January 2010. According to the press release, output and new orders fell and the sector stopped hiring in October as a result of lower demand, strong competition and uncertainty surrounding the elections. Moreover, new export orders declined at a faster pace than total new orders.
Figure 1: Brazil’s PMI (Index and Three-Month Moving Average,[...]