Brazil: Business confidence drops for seventh straight month
July 29, 2011
The business confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) deteriorated in July, declining a seasonally adjusted 2.0% to 105.0 points. The decrease reflected a drop in the expectations index (-3.7% month-on-month), while the present situation index edged down 0.3% mom. Despite seven consecutive months of moderating confidence among businesses, sentiment has remained at elevated levels since August 2009, hovering above the 100-point threshold that separates optimism from pessimism. Moreover, the index is just 9.9% below the post-crisis peak of 116.5 points tallied in March last year. The prevailing optimism in the business community is likely to support investment growth going forward.