São Paulo – The Industrial Confidence Index (ICI), measured by the Brazilian Economics Institute (Ibre) under Getúlio Vargas Foundation (FGV), one of the most renowned business and economics institutes in Brazil, registered the first growth this year, rising from 100.7 points in November to 101.8 points in December, which represents 1.1% growth. This growth, however, was not enough to reach the historic average since 2003, which is 103.9 points.
The return to business confidence in the economy was boosted by the market reaction late this year. The index that measures satisfaction with the current level of demand reached 104.4 points, the greatest mark over the last five months.
In the evaluation of 16.7 % of the 1,244 companies heard, the current demand is strong. In the previous month, this figure was 14%. Among those that consider the performance weak, the rate was practically stable, growing from 11.8% to 12%.
To 44.8% of companies researched, production should expand over the next three months, as against 31.9% with the same expectations last month. The rate of those believing in reduction of activity grew: 17.5% forecast reduction, as against 5.6% in November.
The Level of Use of Installed Capacity rose slightly, to 83.4%, as against 83.3% in November. The level exceeded the historic average since 2003 (83.3%). However, in the period from October to December, the average was 83.4%, the lowest since the fourth quarter of 2009 (83.1%).
*Translated by Mark Ament
