Brazilian Industry’s Confidence in Economy Falls Again to a 3-Year Low

    Brazil’s Industrial Entrepreneur’s Confidence Index (Icei), announced yesterday, July 19, by the National Confederation of Industry (CNI), dropped for the second quarter in a row, to its lowest level since October, 2002.

    According to the economic coordinator of the CNI, Flávio Castelo Branco, the decline “reflects the atmosphere of uncertainty that has pervaded the political sector in the last two months, as well as the deceleration of the economy over the course of the first semester in consequence of higher interest rates.”


    According to the CNI bulletin, the index reached 50.7 points, 5.1 points lower than in April and 14.2 points lower than in January, when the index stood at 64.9 points.


    Despite the drop, an Icei above 50 points is still considered an indication of entrepreneurial confidence, despite the more modest growth in economic activity in the first half of the year in comparison with the same period of 2004, as illustrated by the fact that the economic reference index was also down, from 62.7 points in January to 45.9 points in April and now to 36.4 points.


    There was also a decline in entrepreneurs’ expectations regarding the resumption of production activities in the coming semester, from 60.6 points in April to 55.7 points at present.


    But the CNI economist observes that, although the indicators are not as high as in previous months, they still remain high, and this suggests that expectations with respect to company performance continue to be positive.


    According to Castelo Branco, confidence is the basic element in investment decisions.


    “A decline in confidence can indicate indecision when it comes to resuming some industrial investment projects. Nevertheless, it is possible that, despite this, we are just experiencing a momentary situation and that, with the revival of the economy in the second half of the year, a reactivation of investments is possible.”


    ABr – www.radiobras.gov.br

    Tags:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Brazilian Senate

    A Minute of Silence in Memory of Morality in Brazil

    Unfortunately, the corruption scandals involving the Brazilian Senate have become commonplace. It’s worth noting ...

    Brazilian Airline TAM

    90,000 Plus Passengers in One Day Give Brazil’s TAM a New Record

    Brazil's airline leader TAM announced that it carried a record 91,000 passengers on its ...

    Lula Wants Brazil to Be More Like China and Says Dollar Will Be Left Alone

    Brazilian companies have to increase their productive capacity to compete internationally with rivals such ...

    Luis Fernando Veríssimo

    World Interest in New Brazil Leads to More Translations of Brazilian Authors

    A growing number of Brazilian literary works have been translated into other languages and ...

    A plywood manufacturer in Brazil

    Despite Chinese Competition Demand for Brazil Wood Grows Among Arabs

    Paraná, in the Brazilian South, one of the leading Brazilian forestry industry manufacturers and ...

    American pilots Leopre and Paladino

    Families of Brazilians Killed in Air Crash Want American Pilots Back in Brazil

    The Association of Relatives and Friends of Gol's flight 1907, which fell down in ...

    Bom Gosto dairy company from Brazil

    Major Brazilian Dairy Company Starts US$ 30 Million Venture in Uruguay

    Laticinios Bom Gosto, a major Brazilian dairy corporation, will begin to build its affiliate ...

    Meet Ms. Vasconcelos, a Brazilian Fashion Broker

    The Brazilian businesswoman from Minas Gerais, a state in the southeastern region of the ...

    Brazilian Congress Calls for Defense Minister’s Head Following Airports’ Chaos

    Brazilians senators have transformed the Senate floor, this Wednesday, December 6, in a stage ...

    Former Brazilian president Luiz Inácio Lula da Silva

    Lula Reminds Brazil’s Armed Forces Have no Saying in Selection of Defense Minister

    Luiz Inácio Lula da Silva, Brazil’s former president, came out in full support of ...