Brazil: Business confidence continues to fall in September
September 30, 2011
The business confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) deteriorated in September, declining a seasonally adjusted 1.6% to 101.1 points. The decrease reflected a drop in the expectations index (-2.6% month-on-month) as well as in the present situation index (-0.6% mom). After nine consecutive months of moderating business confidence, sentiment currently lies only 1.1 points above the 100-point threshold that separates optimism from pessimism. Moreover, the index is already 13.2% below the post-crisis peak of 116.5 points tallied in March last year. Falling optimism in the business community is likely to weigh on investment going forward.