Manufacturing activity in Brazil is contracted

Brazilian manufacturing activity was contracted in June for the first time in 15 months, according to a private investigation, due to a truckers strike that caused roadblocks and complicated the transportation of supplies, increasing costs.

The Purchasing Managers Index (PMI) compiled by Markit dropped to 49.8 in the sixth month of the year compared with 50.7 in May, falling below the threshold of 50 which separates growth from contraction for the first time since March 2017.

"As expected, because of the effects of the truckers' strike, the manufacturing sector in Brazil experienced a contraction in June" said Pollyanna De Lima, economist at Markit. they expect the cooling to be short-term and that production will increase over the next 12 months, "added the specialist.

Growth of 1.5%

D one On the other hand, Brazil will experience economic growth this year: only 1.55%, according to the financial market forecast of the largest economy in Latin America, whose economic performance continues without taking off.

The Focus Bulletin, a weekly publication of the Central Bank of Brazil, pointed out that economists expect growth of 1.55 percent for this year and 2.5 percent growth for 2019.

This represents a contraction of the forecast for this year and for the next compared to previous weeks, after official indicators showed that Brazil has a long way to go – the target set by the government to grow to 3.0%. [19659002] "The review is associated with cessation of activity at the beginning of the year, weak indicators of trust for companies and consumers and the possibility of direct and indirect impacts following the paralysis of the freight transport sector at the end of May, "says the report.

The weak industry and services indicators have lowered gross domestic product (GDP) to 2018, and growth is expected to be between 0.8% and 0% in the second quarter.

reached 13.7 million people, according to official data, which is one of the main obstacles to the growth of a country that, between 2014 and 2016, lost 7.0% GDP in a recession lasts. The change reflects the profound impact of protests that lasted until the last days of May, when truckers blocked highways and caused product shortages across the country. (With information from Reuters and Notimex)