With the exception of Brazil, Purchasing Managers’ Indices (PMIs) in the manufacturing sector rose in leading developing economies and in Europe during October.
Last week, Brazilian officials reportedly criticised America’s decision to depress interest rates by buying billion of dollars of government bonds and warned that Brazil would fight for its interests.
Manufacturing PMI rose in Britain, the eurozone and Brazil’s fellow Bric countries – Russia, India and China – despite some countries’ currencies appreciating against the dollar.
The PMIs for the service industries rose in all Bric nations as well as in Britain, although the eurozone’s contracted. In Britain, both service and manufacturing PMI were helped by inflation, which enabled some companies to increase prices.
October was the first time in seven months that Britain’s manufacturing index rose, assisted by output rises in response to faster inflows of new businesses and a solid increase of new export orders.
The PMI is an indicator often used to assess the economic health of the manufacturing sector. It is based on five major indicators: new orders, inventory levels, production, supplier deliveries and labour markets.