High Confidence: Half of Brazilian Companies Expanding in Next Two Months

Construction in Bahia The Industrial Confidence Index (ICI) remained high and reached in December its second highest level since July last year (113.7 points). From November to December, the index rose 3.5% to 113.4 points, in the 11th expansion running.

The figures were disclosed today (30th) by Getúlio Vargas Foundation (FGV). In a press statement, the institution shows that businessmen are confident and recalled that the ICI hit 75.1 points early this year – the second lowest result since the series started being recorded, in 1995.

Among the indicators included in the ICI, the Current Situation Index (ISA) rose 3.5%, from 108.1 to 111.9 points. The FGV press statement points out that, from one month to the next, the share of companies considering the situation for their business “good” rose from 29.9% to 31.6%, whereas the number of businessmen considering the situation “bad” dropped, from 18% to 8.7%.

The Expectation Index (IE) rose by the same percentage as the ISA, reaching 114.9 points. According to the research, the advances show “that industries are more optimistic with regard to coming months.” Of the around 1,110 companies researched, 46.9% forecast expansion between January and February 2010.

The ICI also measures the Level of Use of the Installed Capacity (Nuci). The index registered the ninth expansion running this year. From November to December, the highlight was in the sector of capital goods, which rose from 77.9% to 80.9%.

ABr

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