Brazil: Business confidence drops in June
June 29, 2017
Business sentiment dropped in June from May’s three-year high. The Getulio Vargas Foundation’s (FGV, Fundaçao Getúlio Vargas) business confidence index declined a seasonally-adjusted 3.0% from the previous month, dropping to 89.5 points from May’s 92.3 points. The index still remains below the 100-point threshold that signals that businesses are more pessimistic than optimistic.
According to FGV, the result came as firms grew more pessimistic after a new political scandal directly implicating the president erupted in May. Growing political uncertainty has weighed down businesses expectations for the current and future economic scenario.