Brazil: Business confidence hits one-year high in April
April 29, 2016
Business sentiment improved in April, according to the Getulio Vargas Foundation (FGV, Fundaçao Getulio Vargas) business confidence indicator. The index increased a seasonally adjusted 3.2% over the previous month, rising from March’s 74.7 points to 75.1 points. April’s result marked the highest reading in one year. Despite the rise, the index remains far below the 100-point threshold and signals that businesses are more pessimistic than optimistic.
According to FGV, firms were notably less pessimistic regarding the future economic situation in April. The improvement comes against an increasing likelihood that President Dilma Rousseff will be impeached, which has been boosting market sentiment. In addition, firms were slightly less pessimistic regarding the current economic situation.