Brazil: Business confidence improves in November
November 27, 2013
Business confidence improved again in November according to the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas). The index increased a seasonally-adjusted 1.2% over the previous month and now rests at 99.0 points. Firms' more positive assessment of the current business conditions drove the improvement. Expectations for business in the coming months also improved.
The November reading marks an improvement over the October result, which had marked the most pessimistic sentiment since July 2009. The index fell below the 100-point threshold for the first time in four years in July of this year and has remained there, signaling that businesses are 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