Brazil: Business confidence falls slightly in October
October 29, 2013
Business confidence fell slightly in October according to the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas). The index declined a seasonally-adjusted 0.2% over the previous month and now rests at 97.8 points. The deterioration was driven by firms' more negative view of current business conditions. Expectations for business in the coming months improved moderately.
The October reading marks the most pessimistic sentiment that has been recorded since July 2009. The index fell below the 100-point threshold for the first time in four years in July of this year, signalling that businesses were more pessimistic than optimistic.
LatinFocus Consensus Forecast participants see fixed investment expanding 5.6% in 2013, which is up 0.5 percentage points from last month's forecast. For 2014, panelists expect fixed investment growth to accelerate to a 4.0% expansion, which is down 0.5 percentage points from last month's projection.
Author: Carl Kelly, Economist