Brazil: Business sentiment recovers in December
December 30, 2010
The index of business confidence published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) increased a seasonally adjusted 1.6% over November to reach 114.5 points in December. The improvement in business confidence was mainly driven by a more optimistic assessment of the economic situation over the next six months, with the sub-index rising 1.9% to 112.8 points in December. Similarly, businesses were also more upbeat about the current economic situation, with the sub-index increasing 1.3% to 116.2 points in December. Business confidence has remained above the 100-point threshold that separates optimism from pessimism since August 2009. At the current level, confidence is 1.0% higher than in the same month last year and oscillates around pre-crisis levels. Optimism in the business community has been crucial for the recovery of investment, which has constituted an important growth driver since the second quarter of 2009.