Industry confidence rises in December after three months of decline

Industry confidence in Brazil rose 1.2 points in December, after three months of consecutive declines, reflecting an improved assessment of the current situation, data from the Getulio Vargas Foundation showed on Wednesday.

FGV IBRE’s Industry Confidence Index (ICI) was 93.3 points this month. In the quarterly moving average, the index still fell by 2.1 points.

The Current Situation Index (ISA) rose 2.0 points in December, to 93.8 points, while the Expectations Index (IE) fell 0.2 points, to 92.8 points. An increase in confidence was recorded in 11 of the 19 industry segments monitored by the survey.

In the ISA, the indicator that measures the current company situation is the one that has had the most positive influence, rising by 2.8 points, between the perception of a slight improvement in demand and a reduction in inventories in the period.

“Industry confidence improved in December, but it was not enough to recover the losses suffered during the year. One part of the industry suffered from input problems, and another from reduced demand, which led to an increase in inventories in 2022,” Stéfano Pacini, an economist at FGV IBRE, said in a press release.

He added that, relative to perceptions of the future, entrepreneurs remain cautious on hiring amid an economic slowdown and tight monetary policy.

The indicator measuring employment prospects worsened for the fourth consecutive month, falling by 4.2 points to 95.1 points, the lowest level since July 2020 (93.0 points). The indicator remains below 100 points, which signals a slowdown in hiring in the coming months.

The indicator measuring production prospects for the next three months rose by 3.0 points to 94.1 points.

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Source: Terra

Camila

Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.