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.
Author: Hanna Andersson, Economist