Brazil: Business confidence improves in May, yet remains in pessimistic territory
The Getulio Vargas Foundation’s (FGV, Fundaçao Getúlio Vargas) industrial business confidence rose to 61.4 in May from April’s record low of 58.2. Thus, business sentiment in Brazil’s industrial sector improved somewhat over the previous month, yet it remained well below the 100-point threshold that separates optimism from pessimism among business.
May’s uptick largely reflected firms’ less pessimistic assessment of the future economic situation. Moreover, their view of the current economic conditions also turned slightly less negative.
Despite this month’s improvement in confidence, the outlook remains uncertain as surging numbers of Covid-19 cases and political tensions are likely to weigh on business sentiment in the near-term.