Brazil: Business confidence climbs to highest level in more than a year
August 27, 2012
In August, the business confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) increased a seasonally adjusted 1.4% over the previous month to 104.1 points. The reading reflected a rise in both the present situation as well as in the expectations index. Despite the rebound in confidence levels, the index still sits close to the 100-point threshold, indicating relatively subdued optimism levels. Moreover, business confidence remains well below the post-crisis peak of 116.5 points recorded in March 2010. Subdued confidence in the business community is likely to weigh on investment growth going forward.