Brazil: Business confidence moderates for a fourth consecutive month in April
April 29, 2011
The business confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) deteriorated in April, dropping a seasonally adjusted 1.1% to 111.2 points. The decrease was driven by a fall in the expectations sub-index, reflecting a less optimistic assessment of the economic situation for the next six months, as the monetary tightening currently implemented by the Central Bank affects the outlook for the business community through higher borrowing costs. In contrast, sentiment regarding the current economic situation improved slightly in April. Despite four consecutive months of moderating confidence, business sentiment remains at historically high levels, standing only 4.5% below the post-crisis peak of 116.9 points recorded in March last year. Since breaking into optimistic territory in August 2009, the index has hovered above the 100-point threshold.