Brazil's Composite and Services PMI points to deteriorating business activity

After a slight increase in February 2021 Brazil's both composite and services Purchasing Managers' Indices (PMI) decreased substantially in March, pointing to a deterioration in business activity. The composite indicator dropped to 45.1 from 49.6, while the services index stood at 44.1 in March compared to 47.1 in February. The figures below the 50-threshold indicate a contraction of the output.

The composite indicator dropped to 45.1 from 49.6, while the services index stood at 44.1 in March compared to 47.1 in February.

The manufacturing sub-index which was released by IHS Markit earlier this month, decreased too, but remained above 50, signaling expansion even against the backdrop of new social distancing measures in some regions in Brazil in response to the COVID-19 spread.

Further data and analysis on Brazil’s economy is available on the CEIC Brazil Economy in a Snapshot – Q1 2021 report.