INSUBCONTINENT EXCLUSIVE:
Company closures and lower demand also impacted the sector.Despite these setbacks, the sector remained in growth territory for the fifth
drop to 52.1 in May from 55.9 in April
This figure stayed above the 50 mark, indicating growth rather than contraction.However, the survey excluded responses from Rio Grande do
Sul due to severe flooding.The report noted that the PMI would likely be about two points lower if responses from flood-affected areas were
included.Floods and Lower Demand Slow Brazilian Industry in May
(Photo Internet reproduction)Business confidence weakened slightly due to concerns about the economic impact of the floods
Distribution issues, customer orders, and fiscal challenges also affected confidence.Pollyanna De Lima, Associate Director of Economics at
still showed strength.The floods caused widespread destruction, making it hard for industries to receive supplies
This raised concerns about broader economic impacts.New orders increased in May, driven by advertising and new product launches.However, the
growth rate was the weakest in five months
The Rio Grande do Sul tragedy and company closures affected the growth rate.Global Sales TrendsInternational sales rose for the second
month, with gains in Canada, France, Germany, Japan, South America, and the UK.Yet, demand from Africa, Argentina, China, and the US
weakened compared to April.Production in Brazilian factories remained largely stagnant in May
Nevertheless, job creation surged to its highest rate in nearly three years.Expectations of a medium-term recovery in demand and production
fueled this surge.Inflation pressures reached their peak in August 2022, with respondents citing higher commodity prices
Currency weakness and rising freight costs also contributed to inflation.Some companies passed on these costs to customers by raising prices
