RIO DE JANEIRO, BRAZIL – The Trade Confidence Index (ICOM) increased 1.2 points in October, announced yesterday, October 25th, the Brazilian Institute of Economics of the Getúlio Vargas Foundation (IBRE/FGV). The indicator was estimated based on interviews with 851 companies in the sector between October 1st and 23rd.
With the progress in October, the indicator rose from 97.2 to 98.4 points, nearing the level of 98.7 where it was two months ago before the drop recorded in September.
There was an improvement in the current situation, which may have been influenced by the release of funds from the FGTS (Guarantee Fund for Length of Service) and by the settling of expectations, according to the IBRE. The Current Situation Index rose from 92.1 to 95.1 points.
Rodolpho Tobler, the Trade Survey Coordinator, expects the end of the year to maintain a scenario of a gradual recovery in confidence, with the continuity of FGTS withdrawals and improvement in the labor market.
The other component of the ICOM, the Expectations Index, computed from the entrepreneurs’ forecast for the future, followed the opposite path and fell from 102.5 to 101.9 points.
Source: Agência Brasil