Brazil: Business sentiment rises for a second consecutive month in October
November 1, 2010
Brazilian business sentiment rose for a second consecutive month in October. The index of business confidence published by the Getulio Vargas Foundation (FGV, Fundacao Getulio Vargas) rose a seasonally adjusted 0.5% over September to reach 114.0 points. The improvement in business confidence was mainly driven by a more optimistic assessment of the economic situation for the next six months, as the sub-index jumped from 112.1 in September to 112.9 in October. In the same vein, businesses are also more upbeat about the current situation, as the sub-index rose from 114.7 in September to 115.1 in October. Business confidence has remained above the 100-point threshold that separates optimism from pessimism since August 2009. At the current level, confidence is also 6.3% higher than in the same month last year. Optimism regarding the economic situation has been crucial for the recovery of business investment that constituted an important growth driver since the second quarter of 2009.