Brazil: Business confidence plummets to lowest level in nearly five years
June 3, 2014
Business sentiment fell again in May according to the Getulio Vargas Foundation (FGV, Fundaçao Getulio Vargas) business confidence indicator. The index plummeted a seasonally-adjusted 5.1% over the previous month and now rests at 90.7 points, which is down from the 95.6 points tallied in April. May’s contraction was the sharpest recorded since December 2008 and prompted the index to fall to the lowest level since June 2009. The index is now even further below the 100-point threshold, which signals that businesses are more pessimistic than optimistic.
Firms were markedly more pessimistic regarding both the current and the future situation of the economy. Both components of the index registered the sharpest deteriorations since December 2008