The manufacturing sector is beginning to stabilize in key Latin American countries, and economic recovery in the region is expected to continue improving through the remainder of 2021. However, supply chain constraints, raw material shortages and inflation concerns could dampen growth outlooks and increase manufacturing production costs.

The Leeco® Trading team is ready to assist manufacturers with international commodity sourcing to help control production costs. Contact us today to request a quote or learn more about our services.

Market Metrics to Watch

Manufacturing PMI

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Brazil
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Mexico

Manufacturing PMI in Brazil fell month-over-month during April 2021 as factory output and new orders stagnated. Manufacturing PMI in Mexico rose month-over-month during April 2021, marking the smallest contraction in factory activity in 14 months.

Capacity Utilization

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Brazil
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Mexico

Capacity utilization in both Brazil and Mexico increased month-over-month during March 2021, marking the highest capacity utilization rate in nearly a year for both countries.

Imports

Below is a chart showing April import levels for Mexico, Brazil and Chile. Imports to Mexico, Brazil and Chile all sharply declined month-over-month.

Falling Car Production

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Brazil
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Mexico

Car production fell in both Brazil and Mexico during April 2021, decreasing 4.7% and 11.5% month-over-month, respectively. The ongoing global semiconductor shortage continues to disrupt car production supply chains in the Latin America region.

Mexico GDP

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2020

Mexico’s GDP grew 0.4% quarter-on-quarter during the first three months of 2021, beating expectations. However, this was the slowest growth rate since their economy started recovering due to gas shortages from February’s deep freeze in the southern U.S.