Brazil: Business confidence slides to 26-month low in October
October 31, 2011
The business confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) continued its downward trend in October and declined a seasonally adjusted 0.4% to 100.7 points. The decrease reflected a drop in the present situation index (-0.9% month-on-month), while the expectations index rose in October (+0.2% mom). After ten consecutive months of moderating business confidence, sentiment currently lies only a notch above the 100-point threshold that separates optimism from pessimism. Moreover, the index reached its lowest level since August 2009 and is already 13.6% below the post-crisis peak of 116.5 points, which was recorded in March last year. Falling optimism in the business community is likely to weigh on investment going forward.