Brazil’s Trade Confidence Index (Icom), from Getulio Vargas Foundation (FGV), dropped 2.2 points in July compared to June and reached 95.1 points on a scale of 0 to 200. The drop came after two consecutive highs.
Business people from four of the six segments of commerce surveyed by FGV had a drop in confidence.
The Present Situation Index, which measures confidence in the present, fell 2.9 points to 105.6. The Expectations Index, which measures the business community’s perception of the future, fell 2.7 points to 84.8.
According to Rodolpho Tobler, an economist at FGV, the stimulus measures recently announced by the government should still sustain the current level of demand for a few more months.
He argued that inflation and high interest rates, combined with low levels of consumer confidence, should hold back a more consistent recovery in the sector.
With information from Agência Brasil