Brazil: Business confidence moderates further in February
February 28, 2011
The business confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) decreased a seasonally adjusted 0.3% over January to 112.5 points in February. The moderation reflected a less optimistic assessment of the economic situation for the next six months, as the Central Bank tightened the reins in January, which will translate into higher borrowing costs for businesses going forward. Moreover, sentiment regarding the current economic situation remained flat over the previous month. The drop in February has business confidence returning to the level observed in November 2009. That said, the index continues to hover above the 100-point threshold after breaking through the optimism barrier in August 2009.