Brazil: Business confidence falls slightly in January
January 27, 2014
Business confidence was down slightly in January according to the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas). The index decreased a seasonally-adjusted 0.4% over the previous month and now rests at 99.5 points, down from 99.9 points tallied in December. The index is just below the 100-point threshold, which signals that businesses are more optimistic than pessimistic. The index fell below the threshold for the first time in four years in July 2013.
Firms' more negative outlook on business in the coming months was the main driver behind the decline. Their assessment of current business conditions, however, increased moderately.
LatinFocus Consensus Forecast participants see fixed investment expanding 2.9% in 2014, which is down 0.2 percentage points from last month's forecast. For 2015, panelists expect fixed investment growth to expand 2.9%.
Author: Carl Kelly, Economist