BRASILIA — Economic activity in Brazil contracted significantly in June for a fourth month, a survey of purchasing managers' activity showed on Friday, as the COVID-19 crisis ensured Latin America's largest economy ended the second quarter on a weak footing. There was, however, a sharp divergence between manufacturing, which expanded slightly, and the dominant services sector, which remained under severe pressure and shed jobs at the fastest pace on record. IHS Markit's Brazil services purchasing managers index (PMI) rose to 35.9 in June from 27.6 in May, and the composite PMI encompassing manufacturing rose to 40.5 from 28.1. Although both headline indexes rose on the month, they still signaled steep declines in activity: a reading above 50.0 marks expansion, while a reading below signifies contraction. Both marked the fourth month in a row of shrinking activity.

Source: International New York Times July 03, 2020 13:18 UTC