Brazil: Business confidence declines for a fifth straight month in May
May 31, 2011
The business confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) deteriorated in May, dropping a seasonally adjusted 1.2% to 109.9 points. The decrease reflected falling optimism regarding the current economic state of affairs in the country as well as future expectations. Despite five consecutive months of moderating confidence among businesses, the sentiment remains at historically high levels, standing only 5.7% 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.