Brazil: Business confidence rises significantly in January
January 31, 2017
Business sentiment in Brazil rose significantly in January, climbing to its highest level since May 2014. The Getulio Vargas Foundation’s (FGV, Fundaçao Getúlio Vargas) business confidence index increased a seasonally adjusted 5.1% from the previous month, rising from December’s 84.7 points to 89.0 points. The index remains far below the 100-point threshold that signals that businesses are more pessimistic than optimistic.
According to FGV, the result came as firms reacted to accelerated production towards the end of the year. Falling interest rates in January also helped improve firms’ pessimistic views regarding the current and future economic situation.
FGV revised its historical data series in January 2017 to update seasonal factors and reflect a change in survey weighting.
Author: Christopher Thomas, Economist