Brazil: Business confidence finally returns to optimistic territory in December
January 16, 2014
Business confidence improved once again in December according to the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas). The index increased a seasonally-adjusted 1.1% over the previous month and now rests at 100.1 points, up from 99.0 points tallied in November. The index is now above 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 positive outlook on business in the coming months was the main driver behind the improvement. Their assessment of current business conditions, however, increased negligibly.
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