Brazil: Business confidence moderates in January
January 31, 2011
The business confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) decreased a seasonally adjusted 1.5% over December to reach 112.8 points in January. The moderation was mainly driven by a less optimistic assessment of the current economic situation, with the sub-index dropping 3.5% to 112.1 points in January ? the lowest level since December 2009. On the other hand, businesses were more upbeat about the situation for the next six months, with the sub-index increasing 0.7% to 113.6 points in January. Business confidence has remained above the 100-point threshold that separates optimism from pessimism since August 2009. Optimism in the business community has been supporting the recovery of investment, which has constituted an important growth driver since the second quarter of 2009.