Employment also picked up as firms looked to meet rising demand,
while supply constraints pushed price pressures back up again,
IHS Markit's latest monthly purchasing managers index (PMI)
report showed.
IHS Markit's headline manufacturing PMI rose to 58.4 in February
from 56.5 in January, marking the ninth consecutive month of
growth.
A reading above 50.0 marks expansion, while a reading below
signifies contraction. The series was launched in 2006.
"The manufacturing sector in Brazil has regained momentum after
a stuttering start to 2021, but the speed of recovery remains
slower than in the second half of last year," said Tim Moore,
economics director at IHS Markit.
"Improving conditions were driven by a strong rise in new order
volumes, especially from domestic clients. Goods producers
sought to ramp up production schedules and staff numbers in
response to greater demand, but supply constraints acted as a
brake on growth," he said.
IHS Markit's new orders sub-index rose to 56.0 from 54.8 in
January, the first rise in six months, while the employment
index rose to 53.8 from 51.2.
The future output index rose, IHS Markit said, and the output
prices index rose to a three-month high.
A growing number of economists say Brazil's economy will shrink
in the first quarter, dragged down by a second wave of COVID-19
and the end of emergency cash transfers to millions of poor
people on Dec. 31.
Inflation remains sticky too, presenting a further headache for
consumers, businesses and policymakers.
(Reporting by Jamie McGeever)
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