Brazil: Business confidence rises to highest level in 20 months
February 28, 2013
In February, the business confidence index published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) inched up a seasonally adjusted 0.1% over the previous month to 106.6 points, which represents the highest level observed since June 2011. The reading reflected a rise in the expectations index, whereas the present situation index fell back in February.
Consequently, the index remains above the 100-point threshold, indicating that optimism prevails among businesses. Nevertheless, business confidence still remains below the post-crisis peak of 116.5 points recorded in March 2010.
LatinFocus Consensus Forecast participants see fixed investment expanding 4.8% in 2013, which is down 0.3 percentage points from last month's forecast. For 2014, panellists expect fixed investment growth to accelerate to a 6.3% expansion.