As reported in the publication, while the Southern region has faced challenges, other regions of Brazil have shown progress in industrial confidence.
According to data presented by Industrial business confidence index (ICEI) In May 2024, the southern region of Brazil was hit by recent floods, resulting in a decline in business confidence. The regional index fell by 3.5 points, from 50.9 to 47.4, indicating a shift from confidence to distrust. This decline contrasts with the increase in confidence seen in other regions of the country.
As reported in the publication, while the Southern region has faced challenges, other regions of Brazil have shown progress in industrial confidence. The North of the country recorded the greatest increase, with growth of 3.9 points, reaching 56.5. In the North East, confidence rose by 1.2 points, reaching 56.1. In the Center-West, growth was more modest, with an increase of 0.6 points, equal to 54.3. In the South-East, confidence remained almost stable, with a slight increase of 0.2 points, reaching 50.6.
The report provides detailed data on trust across several industry sectors. In May 2024, confidence increased in 14 out of 29 sectors, while the remaining 15 sectors saw a decline. Three sectors, specifically Perfumery, Cleaning and Personal Hygiene, Specialized Building Services and Machinery and Equipment, have moved from mistrust to trust. The IT, electronic and optical equipment and footwear and parts sectors recorded a countertrend.
Furthermore, confidence varied little by business size, remaining relatively stable between April and May. Small businesses presented an index of 49.9 points, very close to the 50-point dividing line, indicating a neutral rating. Medium and large companies remain confident, with the indices at 51.0 and 53.5 points respectively.
José Antônio Valente, director of the company equipment rental Trans Obra, said that in sectoral terms, the fact that 14 out of 29 sectors recorded an increase in confidence is a positive sign of recovery and resilience. However, sectors still suffering from a lack of trust need specific attention. “Customized strategies for each sector, considering its particularities and challenges, are necessary to promote a more stable and reliable business environment. Digitalization and the adoption of new technologies can be important catalysts for these sectors.”
José Antônio continued by stating that a concrete example of how specific sectors can benefit from this approach is the equipment rental in Ribeirão Preto, St. Paul. With greater confidence and investment in infrastructure, this sector can expand, meeting the growing needs for construction and industrial development in the region. This growth can be an indicator of how the right investments can boost specific sectors, creating jobs and boosting the local economy.
According to the information presented in the report, which can be analyzed in full through the link at the beginning of this article, data collection for ICEI was carried out from 1 to 16 May 2024, covering 2,001 companies of different sizes: 800 small, 721 medium businesses and 480 large businesses.
Website: https://www.transobra.com.br/
Source: Terra
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