Brazilian industry confidence at five-month high in May -FGV

RIO DE JANEIRO, BRAZIL – Confidence in the Brazilian industry rose in May to its highest level in five months. Both perceptions of the current situation and expectations for the coming months improved, the Getulio Vargas Foundation (FGV) announced Friday (27).

The data showed that the Industry Confidence Index (ICI) increased by 2.3 points from the previous month to 99.7, reaching its highest level since December 2021 (100.1 points).

“The expectations index increased in all sectors, but the significant recovery influenced the magnitude of the increase in optimism among consumer goods manufacturers.”

The index of current conditions (ISA), which measures business owners’ assessment of the current state of the industry, rose 1.6 points to 100.4 in May, according to FGV.

The expectations index (IE), an indicator of how business owners feel about the coming months, rose 3.0 points to 99.0, both reaching their highest levels since December 2021.

According to Campelo, the only use category that saw an increase in pessimism in May was durable goods, which is directly related to the gradual rise in interest rates.

Data released earlier this month by the IBGE showed that Brazilian industrial production rose 0.3% in March, reaching a peak for the second consecutive month, but ended the first quarter with a loss of strength.