Brazil: Business confidence falls again in April
April 30, 2013
In April, the business confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) declined a seasonally adjusted 0.8% over the previous month to 104.2 points. The drop reflected a decline in both the expectations index as well as in the present situation index. As a result of the monthly fall, business sentiment reached the lowest level observed in eight months.
Despite the decrease, the index has now remained above the 100-point threshold for almost four years, indicating that optimism prevails among businesses. That said, business confidence is well below the post-crisis peak of 116.5 points recorded in March 2010.
LatinFocus Consensus Forecast participants see fixed investment expanding 4.4% in 2013, which is down 0.1 percentage points from last month's forecast. For 2014, panellists expect fixed investment growth to accelerate to a 6.2% expansion.