Brazil’s industrial confidence declines in July as elections approach

In July, the industrial confidence in Brazil fell for the first time in four months in the face of unfavorable political and macroeconomic prospects, reported the Getulio Vargas Foundation (FGV) on Wednesday (27).

FGV’s data showed that its Industry Confidence Index (ICI) fell 1.7 points, to 99.5, in comparison with the previous month, interrupting a sequence of three consecutive highs.

The Current Situation Index (ISA), which measures the businessmen’s feelings about the present moment of the industrial sector, fell 0.9 points, to 101.4 points, according to FGV.

The Expectations Index (IE), an indicator of the perception about the coming months, had a sharper drop, by 2.6 points, to 97.6 points.

However, the FGV pointed to the maintenance of relative satisfaction with the current business situation, given the positive assessments of entrepreneurs about foreign demand and the development of inventory adjustment.

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