Brazil: Business confidence continues to weaken
June 30, 2011
The business confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) worsened in June, declining a seasonally adjusted 2.5% to 107.1 points. The decrease mainly reflected falling optimism regarding the present situation (-3.5% month-on-month), while the expectations index dropped 1.7% mom. Despite six consecutive months of moderating confidence among businesses, sentiment remains at elevated levels, standing 8.1% below the post-crisis peak of 116.5 points recorded in March last year. Since breaking into optimistic territory in August 2009, the index has hovered above the 100-point threshold that separates optimism from pessimism. High levels of optimism in the business community are likely to support investment growth going forward.