Brazil’s manufacturing sector contracted in April and the sector is expected to record only a slight growth, according to a private survey.
Reuters reports that, the HSBC Purchasing Managers' Index (PMI) for Brazil fell to a seasonally adjusted 49.3 in April. The figure for March was 50.6.
All figures greater than 50 represent expansion in the market, while figures under 50 mean activity contracted.
The result comes as a separate poll by the nation’s central bank said Brazilian industrial production is expected to expand by only 1.4 percent for the year. According to economists polled, economic growth is likely to be about of 1.65 percent in 2014.
"The decline of the HSBC Brazil Manufacturing PMI to 49.3 in April and the softening of the majority of its components suggest that the Brazilian economy is losing momentum," said Andre Loes, chief Brazil economist at HSBC.
There was some good news for global manufacturing in April. The US and UK industries expanded and activity in China rose slightly, according to the latest figures.
However, the news was not so good for Australia’s manufacturing sector. The Australian Industry Group PMI dropped 3.1 points to 44.8 in April.