Brazil: Business confidence falls in February
February 27, 2017
Business sentiment fell in February, a month after climbing to its highest level in more than two years. The Getulio Vargas Foundation’s (FGV, Fundaçao Getúlio Vargas) business confidence index decreased a seasonally adjusted 1.3% from the previous month, falling from January’s 89.0 points to 87.8 points. The index remains far below the 100-point threshold that signals that businesses are more pessimistic than optimistic.
According to FGV, the result came as firms were more pessimistic regarding their expectations for the current and future economic situation. Looking at the details, expectations for production in the next three months decreased, despite falling interest rates and a recent measure adopted by the government to allow workers to access funds from the inactive Guarantee Fund for Length of Service (FGTS).
Author: Christopher Thomas, Economist