Brazil: Business confidence improves for the fourth month in a row
March 23, 2012
The business confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) increased 0.3% over the previous month to 102.8 points in March from 102.5 points in February. The reading mainly reflected a rise in the expectations index, whereas the present situation index declined over the previous month. Sentiment edged up for the fourth consecutive month, following on 10 straight months of moderating business confidence. That said, the index still sits close to the 100-point threshold, indicating subdued optimism levels. Moreover, business confidence remains well below the post-crisis peak of 116.5 points recorded in March 2010. Subdued confidence in the business community is likely to weigh on investment growth going forward.