Brazil’s manufacturing continued to expand at a solid rate in December, though the pace slowed, survey data from IHS Markit showed on Monday.

The purchasing manager’s index for the manufacturing sector fell to 61.5 from 64.0 in November. A reading above 50 suggests expansion in the sector.

Output growth was underpinned by strong gains in new orders. Employment grew for a sixth month, albeit at a slower rate, but the pace remained solid. The increase in input buying accelerated.

Supplier delivery times rose sharply mainly due to difficulties in obtaining key materials. Input costs increased and part of that increase was passed on to clients through higher charges.

“Looking ahead, companies were optimistic that output levels would increase in 2021, but hopes were pinned on the COVID-19 pandemic coming to an end, the approval of government reforms and an improvement in material availability,” Pollyanna De Lima, economics associate director at IHS Markit, said.

The material has been provided by InstaForex Company – www.instaforex.com

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