01.09.201410:39:00UTC+00Brazil Manufacturing Expands For First Time In 5 Months

Brazil's factory activity increased for the first time in five months in August, and after the conclusion of the soccer World Cup, led by increases in output and purchasing activity, survey results from Markit Economics showed Monday.

The HSBC Brazil Purchasing Managers' Index rose to 50.2 from 49.1 in July. The reading topped the neutral 50-mark for the first time since March.

Ending a four-month period of contraction, output grew in August following the conclusion of the soccer World Cup and due to signing of new commercial deals. Intermediate goods producers recorded the strongest output growth.

New orders were unchanged in August after four months of decline. However, new export orders increased for the third time in the past four months in August.

Meanwhile, employment declined slightly in August following the modest job creation in July.

Input costs increased marginally, extending the rising trend of the past 60 months. Output prices rose for the third straight month.