Industrial confidence in Brazil in July reaches highest level since January

RIO DE JANEIRO, BRAZIL – Brazilian industrial confidence registered a slight increase in July, reaching its highest level since the beginning of the year after a third consecutive increase, the Getulio Vargas Foundation (FGV) announced Wednesday (28).

The data showed that the Industrial Confidence Index (ICI) increased by 0.8 points to 108.4 points in July, reaching the highest level since January (111.3 points).

“Industrial confidence rises for the third consecutive month, influenced by an adjustment of assessments about the moment at a high level, but with a slowdown in business optimism about the coming months,” Claudia Perdigão, economist at FGV IBRE, said in a statement.

In July, the current situation (ISA) index increased for the second time by 0.5 points to 111.8 points. The Expectations Index (IE), an indicator of the economy’s assessment of the coming months, rose 0.9 points to 104.9, registering its third consecutive month of increase, but at a slower pace.

However, Perdigão warned of several obstacles that could hinder the future scenario.

“Companies continue to face a scenario of commodity shortages, possible energy rationing, and great economic uncertainty, which tend to limit a greater increase in confidence in the coming months,” she said.

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