At the start of 2013 a number of experts were suggesting a significant slowdown of the Brazilian economy which has for some time been the centre stone of the Latin American revival.
Some experts were predicting economic growth for 2013 as low as 0.
9% although after a revival in the first part of 2013 these forecasts have been substantially upgraded.
Manufacturing output in Brazil The main reason why there is renewed optimism for the Brazilian economy is the fact that Brazil's manufacturing output has grown for a fifth straight month.
The HSBC Purchasing Managers Index for the Brazilian manufacturing sector showed yet another rise in the month of February although the index did fall back from 53.
2 in January to 52.
5.
Any index figure above 50 shows an expansion of output as consequently anything below 50 shows a reduction in output.
The manufacturing sector has been one of the more disappointing areas of the Brazilian economy over the last 10 years although finally we are starting to see the green shoots of life.
It will be interesting to see whether this improvement continues as many now expect.
Employment in Brazil One factor which has perhaps not received as many headlines as it should is the strengthening employment market in Brazil.
After a nine-month decline in manufacturing employment we have seen two straight months of increased employment.
As long as the manufacturing sector continues to roll along in a positive manner then we can only expect further employment opportunities to arise for the Brazilian workforce.
When you compare the ongoing strengthening of the Brazilian economy against a reduction in industrial output of 2.
7% between 2012 in 2011, this puts everything into perspective.
At a time when the economy was growing it seems that productivity was not maintaining the same improvement and indeed in many cases was going backwards.
Thankfully, the Brazilian government has issued a number of changes to the various business regulations which should assist with productivity gains, improved employment rights and a more stable workplace.
Economic growth in the future The general consensus seems to be that the Brazilian economy will grow by around 3.
1% in 2013 which is on the surface acceptable but very impressive compared to Brazil's European counterparts.
The strengthening of economic activity over the last two months has been encouraging especially when compared to the more sluggish final quarter of 2012.
Brazil has for some time led the way in Latin America, the country is at the head of the table when negotiating new trading arrangements and thankfully it seems to be back on track with regards to economic growth.
When you also consider the fact there are significant productivity gains to be made over the short, medium and longer term, this places Brazil in a very strong position going forward.
Conclusion After a period of difficult trading it seems as though the Brazilian manufacturing sector is very much back to full speed ahead.
We have seen an improvement in business levels, exports are up and there are also signs of improvement in the area of employment numbers.
This comes at a time when many were starting to worry about the short to medium-term outlook for the Brazilian economy after a period of relative outperformance and major economic upheaval.