By Ovunc Kutlu
ISTANBUL (AA) - Brazil's production growth in October climbed to its highest level in six months amid improvement in international sales, according to a report released Friday by the US-based financial services company S&P Global.
The S&P Global Brazil Manufacturing Purchasing Managers’ Index (PMI) stood at 52.9 in October, down 0.3 points from 53.2 in September, but managed to come in above the neutral mark of 50.0.
"Despite falling from 53.2 in September, the latest reading was consistent with a solid pace of growth," said the report, adding that the index "indicated an improvement in business conditions for the tenth straight month."
"Total new orders rose further, albeit to a lesser extent than in September," it said. "Buoyed by positive client interest, firms sought to rebuild inventories and purchased additional inputs at the second-fastest pace in over three years."
Although there was a slowdown in demand in the domestic market, international sales rose to a greater extent.
Brazilian companies especially noted an improvement in demand from Africa, Japan and the Americas.
Pollyanna De Lima, economics associate director at S&P Global Market Intelligence, said in the report that Brazilian manufacturing growth remained robust in October, bolstered by a resurgence in international sales.
"The positive demand landscape, combined with an optimistic outlook, spurred companies to increase inventories in anticipation of future sales growth," she added.