Brazil’s private sector shrunk at the slowest pace since the start of the year in June as declines in manufacturing output and services eased, albeit remained sharp, survey data from Markit Economics showed Tuesday.
The Composite Output Index of the purchasing managers’ survey rose to 42.3 from a record low 38.3 in May. A score below 50 suggests contraction in the sector.
The services business activity index of the survey also rose in June, climbing to 41.4 from 37.3 in May. Services output declined for the sixteenth month in a row.
Both manufacturing and services sectors reported decreases in new business and employment.
Input cost inflation was the third-fastest rate since July 2008, the survey showed. Costs were driven by higher energy, petrol and food costs. Meanwhile, weaker demand prompted companies to continue lowering their charges.
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