São Paulo – The index computed by the Getúlio Vargas Foundation (FGV, in the Portuguese acronym) to measure industry confidence in the economy dropped for the eighth straight month in August from July, this time by 1.2%. As per a survey released this Wednesday (27th), the Industry Confidence Index (ICI) scored 83.4 points this month. In July, the score had been 84.4 points.
According to FGV, this was the poorest performance since April 2009, when Brazil was struggling with the international economic crisis and the ICI scored 82.2 points. However, the survey demonstrates that the ICI declined by a lower rate from July to August than in the three preceding month-on-month comparisons, in which the negative rates ranged from 3.2% to 5.1%. Conversely, the index measuring industry expectations for the economy was up by 1.4% to 84.1%.
Despite the higher expectations index, FGV has noted that the Brazilian industry is pessimistic about the economy and assessments will tend to worsen in months to come.
*Translated by Gabriel Pomerancblum
