Brazil: Business confidence continues to deteriorate in September
September 26, 2013
Business confidence pushed further into pessimistic territory in September according to the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas). The index declined a seasonally-adjusted 1.0% over the previous month and now rests at 98.0 points. The deterioration was driven mainly by firms' more negative expectations for business in the coming months. Only a minimal change was registered in their view of current business conditions.
The September reading marks the most pessimistic sentiment that has been recorded since July 2009. The index fell below the 100-point threshold for the first time in four years in July of this year, signalling that businesses were more pessimistic than optimistic.
LatinFocus Consensus Forecast participants see fixed investment expanding 5.6% in 2013, which is up 0.5 percentage points from last month's forecast. For 2014, panelists expect fixed investment growth to accelerate to a 4.0% expansion, which is down 0.5 percentage points from last month's projection.
Author: Carl Kelly, Economist