Industry confidence in Brazil remains stable in February after a series of increases, FGV says

Industry confidence in Brazil remained stable in February, showing some accommodation after a run of four consecutive months of gains, Fundação Getulio Vargas (FGV) said on Tuesday.

The Industrial Confidence Index (ICI) remained at 97.4 points this month. Over the period, the Current Situation Index (ISA) rose by 0.2 points to 98.0 points, the highest level since September 2022 (100.3), but this movement was offset by the index of expectations (IE), which fell by 0.2 points to 96.8 points. .

“The result signals an accommodation after a period of improvement in demand and normalization of inventories,” said Stéfano Pacini, economist at FGV Ibre.

According to him, the outlook for hiring in the coming months is more favorable, although in general there is caution regarding production and the economic environment for the future.

“Apparently the new industrial policy has not yet had a strong impact on the expectations of the sector, which seems to be awaiting its development and related actions, but the greater optimism regarding employment seems to be a positive sign”, explained Pacini.

In January, the government of President Luiz Inácio Lula da Silva launched a development plan for the sector until 2033 and envisaged, among the tools to stimulate the sector, 300 billion reais in credit lines, business subsidies and local content in products.

The plan is among the actions planned by the government in an attempt to give impetus to the sector and stimulate growth despite signs of an economic slowdown.

Source: Terra

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