Brazil: Industrial business sentiment inches up in September
Latest reading: The seasonally adjusted industrial business confidence index published by the Getulio Vargas Foundation (Fundação Getúlio Vargas) increased to 90.5 in September, following August’s 90.4. As such, the index remained entrenched below the 100-point threshold, signaling deep pessimism among industrial firms.
In September, businesses grew less pessimistic about the current situation (+95.0 vs +93.4 in August). In contrast, firms were less upbeat about expectations for the coming months (+86.1 vs +87.6 in August).
Outlook: Taken together, industrial business sentiment averaged below Q2 in Q3, boding ill for investment and employment in the quarter. Sentiment was likely dampened by near two-decade high interest rates and announcements of new and higher U.S. tariffs—live from 7 August.