Business Confidence Rises 1.5 Points to Close 2019 at Highest Level

RIO DE JANEIRO, BRAZIL – The Business Confidence Index, measured by the Getulio Vargas Foundation (FGV), rose 1.5 points in December 2019 to 97.1 points.

This is the index’s highest level since January, closing the year with an accumulated positive balance of 1.2 points on a scale of zero to 200 points. The data was released yesterday, January 2nd.

The survey measures the confidence of entrepreneurs in four sectors: industry, services, trade, and construction.

According to Viviane Seda Bittencourt, coordinator of the FGV/IBRE surveys, 2019 ended with a positive result for business confidence. “Entrepreneurs’ perception of the current business situation has progressed to its highest level since 2014, yet it is still below the levels considered “average”.

“Expectations remained at 100 points, with accommodation of trade following the release of the FGTS (Severance Premium Reserve Fund), and a strong optimism in construction.

The indicators are favorable for 2020, but a continued rebound depends on the reduction of uncertainty, which still remains at a high level, for companies to invest again”, she said.

The index that measures the current perception of entrepreneurs rose 1.7 points to 94.5 points, the highest level since April 2014 (96.5 points). The Index of Expectations remained relatively stable as it retreated 0.1 points to 100.1 points, remaining at a level considered neutral (neither pessimistic nor optimistic).

In December, there was an improvement in confidence in all sectors that make up the Business Confidence Index. Industry confidence rose 3.2 points in the month and closed the year up an average of 1.5 points in the fourth quarter over the previous quarter.

Construction confidence, which has been increasing since the end of the second quarter of 2019 (with the exception of September), reached 92.3 points in December, its highest level since June 2014 (92.9 points).

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