Brazil: Preliminary survey data shows business confidence tumbled to series-record low in first half of April
An extraordinary preview of April survey data from the Getulio Vargas Foundation’s (FGV, Fundaçao Getúlio Vargas), revealed business sentiment in Brazil’s industrial sector sank to a record low of 58.5 in April from March’s revised 97.5 (previously reported: 98.2). The print is based on data collected until 13 April. Consequently, the index is now entrenched below the 100-point threshold that separates pessimism for optimism among businesses in the Brazilian industrial sector.
The alarming decline in business confidence in April suggests the coronavirus pandemic has already begun to choke off business activity and thus investment and could keep sentiment in the industrial sector depressed throughout Q2.