Brazil's manufacturing sector expanded for the first time in four months in October, helped by a strong pick up in production, data from a survey by Markit Economics and HSBC Bank showed Friday.
The manufacturing purchasing managers' index, adjusted for seasonal variations, advanced to 50.2 in October from 49.9 in September. Readings above 50 signal growth, and those below indicate decline.
Brazilian companies raised their production levels in October, amid expectations of better economic conditions and forecasts of stronger client demand. Production growth was the quickest since May.
New business inflows stabilized during the month, following three successive months of contraction. Export orders, however, fell at the fastest pace since July.
Meanwhile, manufacturers reduced their workforce numbers further in October, stretching the current sequence of job shedding to seven months.
Elsewhere, a report released by statistical office IBGE today showed that Brazil's industrial production increased 2 percent year-on-year in September, after falling 1.2 percent in August. Economists had forecast a 3 percent growth for October.
Sequentially, seasonally adjusted industrial production moved up 0.7 percent, after staying flat in August. The monthly growth rate was forecast to be 1.3 percent.
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