Brazil’s industrial confidence has first high in nine months in April, shows FGV

RIO DE JANEIRO, BRAZIL – Industrial confidence in Brazil rose in April for the first time since July last year, the Getulio Vargas Foundation (FGV) reported on April 27, a sign that may indicate the normalization of activities in the sector.

The FGV data showed that the Industry Confidence Index (ICI) rose 2.4 points in the month to 97.4 points, interrupting a sequence of 8 consecutive monthly losses.

“Influenced by the reduction of problems with the supply of inputs and by the passages of the Omicron variant outbreak and the moment of greater pessimism with the potential impacts of the Russia-Ukraine War, the rise in industrial confidence in April can be interpreted as a movement towards the normalization of activities in the sector,” said in a note Aloisio Campelo Jr. economist at FGV Ibre.

“The indicators related to the present moment are moving towards neutrality levels, and expectations have become less pessimistic, emphasizing favorable evaluations concerning external demand,” he added.

The Present Situation Index (ISA), which measures the business people’s feelings about the present moment of the industrial sector, rose 1.4 points in April to 98.4 points, according to FGV.

The Expectations Index (IE), an indicator of the perception about the coming months, advanced 3.2 points to 96.0. Both indexes rose for the first time in nine months.

Data released by the IBGE earlier this month showed that Brazilian industry grew again in February, rising 0.7% over January, although it was still below the pre-pandemic level.