The Brazilian industrial activity approached the recession in April, when it reached the weakest level in almost a year and a half, according to a survey issued on Friday (1). The data is the result of the fall of requests and confidence in the lowest level in five years, amid concerns related to the US tariff policy,
The S&P (PMI) Index Index fell from 51.8 in March to 50.3 in April, the lowest level since December 2023, which is close to the 50th sign that separates shrinkage growth.
The global intelligence director of the global market, Poliana de Lima, said: “The registration of the main purchasing managers index in a marginal manner within the growth area, which indicates a large -scale industrial conditions and covers the somewhat concerned conditions that indicate that the sector can gradually enter into a shrinkage stage.”
He added: “The sector faced a difficult scenario, characterized by the current uncertainty of global trade, political issues and high loan costs.”
This month was marked by a decrease in confidence in future production to the lowest level in five years, amid increasing concerns about the US tariff policy and internal economic conditions.
US President Donald Trump has announced many measures of customs tariffs on April 2, which was called “Liberation Day”, and global financial markets have been shaken since then.
April also had the first decrease in the new Brazilian industry requests in 16 months, although the contraction rate was marginal. Research indicates the weakening of demand in the internal and international markets, where some participants attribute the decrease in sales to the increase in the prices of final goods and uncertainty in the market.
New export sales fell for the fifth time in six months, indicating a decrease in Mirosor and demand for the United States.
Thus, the Brazilian industrial production increased in the third month in a row in April, but by the lowest rate of this period, limited to the cancellation of requests, low sales and the scarcity of qualified workers, according to the survey.
While the capital commodity sector has supported the growth of new demands and production, consumer commodity manufacturers and registered medium commodities.
The creation of jobs in the sector in April was weak in four months, reflected on cost reduction measures and the absence of new requests.
With regard to prices, although inflation in public cost has decreased to the lowest level in 11 months, it remained highlighted, with reports about the increase in prices of loaders, shipping, natural gas and steel, as well as lowering oil prices, textiles and some commodities.
Inflation has also declined in industry prices, as it reached the lowest level since March 2024. Although some companies have succeeded in part of their additional costs to customers, others have provided discounts in an attempt to benefit from sales.