Brazil’s services PMI in October
According to a report by Markit Economics, the final Brazil Services PMI (purchasing managers’ index) contracted in October 2017. A level below 50 indicates contraction in services activity, and a level above 50 indicates expansion in services activity.
Brazil’s service PMI stood at 48.8 in October as compared to 50.7 in September 2017 and was below the preliminary market expectation of 50.5. After four months of contraction in services activity, the index moved into the expansion zone in September 2017. However, it moved again into the contraction zone in October 2017.
Brazil’s (EWZ) services PMI in October was affected by the following factors:
- Production volume and output slowed in October 2017.
- New business orders and export orders fell for the first time in four months.
- Employment growth in the services sector also fell in the same month.
Consumer confidence and business confidence fell in the same month due to rising political and economical uncertainties. Weaker domestic demand mainly hampered the new order growth in that month.
Performance of ETFs in October
In the next part of this series, we’ll analyze the manufacturing PMI for Russia in October 2017.