Business confidence rises in August with a greater view of the present scenario, says FGV

Business confidence rises in August with a greater view of the present scenario, says FGV

Industry confidence in Brazil rose in August, driven by an improvement in the perception of entrepreneurs about the current situation in the sector, informed the FGV (Fundação Getulio Vargas) this Monday (29), citing a possible effect of the reduction in fuel prices. and energy.

The FGV’s ICI (Industry Confidence Index) rose 0.8 point in August to 100.3 points, after having fallen sharply in the previous month. The survey’s ISA (Current Situation Index) advanced 1.4 point this month to 102.8 points, while the IE (Expectations Index) gained 0.3 point to 97.9.

“The improvement in the business environment in the month was possibly influenced by the decompression of costs with the drop in fuel and energy prices,” said Stéfano Pacini, economist at FGV Ibre, in a note, adding that the ICI reading shows that the industrial sector maintains a good level of activity in the third quarter.

“Demand levels are still positive and inventories remain balanced, despite the still problematic scenario regarding the supply of some types of inputs. This favorable picture is reflected in the still favorable forecasts for the evolution of employment.”

An indicator of job expectations for the next three months rose for the fifth straight month, from 0.7 points to 104.6 points, the FGV said. This result was the best since October 2021 (108.1).

Despite the positive result in August, Pacini warned that there is still some caution on the part of businessmen regarding the future, in the face of a second semester marked by presidential elections and with expectations of maintaining high interest rates in Brazil.

Source: Reuters

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