Brazil Business Confidence May 2020

Brazil

Brazil: Business confidence continues to improve in June

June 29, 2020

The Getulio Vargas Foundation’s (FGV, Fundaçao Getúlio Vargas) industrial business confidence increased to 77.6 points in June from May’s 61.4 points. Thus, business sentiment in Brazil’s industrial sector logged a notable improvement over the previous month. However, it still remained well below the 100-point threshold that separates pessimism from optimism among businesses.

June’s upturn was largely driven by companies’ less negative appraisal of the future economic situation. Moreover, their perception of the current economic conditions also turned less pessimistic.

Although sentiment in the industrial sector improved in June, the outlook remains somewhat uncertain as rapidly increasing numbers of Covid-19 cases and political tensions are likely to weigh on business confidence in the near-term.

Panelists surveyed for this month’s LatinFocus report see fixed investment falling 12.5% in 2020, which is down 2.0 percentage points from last month’s forecast. For 2021, panelists project fixed investment to rebound and grow 6.4%.


Author:, Economist

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Brazil Business Confidence June 20 20

Note: Index of industry business sentiment (seasonally adjusted). Readings above the 100-point threshold indicates businesses expect economic conditions to improve.
Source: Getulio Vargas Foundation.


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