HSBC’s Purchasing Managers Index for Brazilian services fell to 49.7 in August from 50.3 in July on a seasonally adjusted basis. Readings above 50 indicate expansion.
Retreating services activity and an ongoing slowdown in manufacturing lead to an overall PMI contraction for the second month in a row. The survey reinforced views that Brazil’s spurt of economic growth in the second quarter has quickly fizzled.
“The services PMI fell below the 50 mark for the first time since August 2012, suggesting that the economy is slowing down,” said the chief economist at HSBC, Andre Loes.