Brazil: Business confidence reaches lowest point in more than 4 years
August 26, 2013
Business confidence moved a bit further into pessimistic territory in August, according to the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas). The index declined a seasonally adjusted 0.6% over the previous month and now rests at 99.0 points. The slight deterioration was driven mainly by firms' more negative view of current business conditions. Only a minimal change was registered in their expectations for business in the coming months.
August's reading marks the most pessimistic sentiment since July 2009. The index fell below the 100-point threshold for the first time in four years last month, signalling that businesses were more pessimistic than optimistic.
LatinFocus Consensus Forecast participants see fixed investment expanding 4.6% in 2013, which is unchanged from last month's forecast. For 2014, panellists expect fixed investment growth to accelerate to a 5.3% expansion.
Author: Carl Kelly, Economist