Brazil's services PMI falls to 50.4 points in May, reveals S&P Global

The purchasing managers index (PMI) for the services sector in Brazil slowed the pace of growth, from 52.3 points in April to 50.4 in May, S&P Global reported this Wednesday (3).

The lack of new orders in May limited the sector's growth in the country, while the sharp increase in sales prices weakened the already fragile demand. "Companies saw their own burdens increase further, leading them to limit hiring and reduce growth expectations," says S&P.

Numbers above 50 signal that a country's economic activity has expanded, according to this type of survey by S&P Global.

For the associate director of economics at S&P Global Market Intelligence, Pollyanna de Lima, the May PMI data is "alarming". "The role of the services sector as a buffer against the fragility of the industrial sector appears to be diminishing," he notes.

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Pollyanna de Lima highlights that many businesspeople hope that this slowdown in the sector is temporary and that a recovery next month can support the results of the second quarter. "Still, continued inflationary pressures, exacerbated by external shocks, suggest more vulnerabilities ahead," he warns.

Composite PMI

According to S&P, the country's Composite PMI, which measures the combined activity of service companies and industry, also fell, from 52.4 in April to 49.5 points in May.

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Source: CNN