Brazil: Business confidence reaches 10-month high in May
May 28, 2012
The business confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) increased a seasonally adjusted 0.1% over the previous month in May to 103.4 points, which represented the highest level in 10 months. The reading reflected a rise in the expectations index, while the present situation index declined over the previous month. Although sentiment edged up for the sixth consecutive month, the index still sits close to the 100-point threshold, indicating relatively subdued optimism levels. Moreover, business confidence remains well below the post-crisis peak of 116.5 points recorded in March 2010. Subdued confidence in the business community is likely to weigh on investment growth going forward.
Author: Armando Ciccarelli, Head of Data Solutions