Brasília – The industrial businessmen confidence index was up one point in September from the same month of last year, at 57.4 points. Compared with August this year, the increase was greater, at 2.9 points. The figures have been released this Wednesday (19th) by the National Federation of Industry (CNI). Despite the increase, the indicator remains below the historical average, which is 59.5%.
According to CNI research manager Renato da Fonseca, the government’s consumption incentive and production cost reduction measures – extension of the lowered Tax on Industrialized Products (IPI, in Portuguese), cheaper energy tariffs and payroll tax breaks – have influenced businessmen’s perceptions, even though some are scheduled to become effective only in 2013.
“Trade keeps on growing, it has seen no crisis. The problem is, the demand is partly for imported products and the industry is having trouble competing. As soon as the government begins to take competitiveness-enhancing measures, industrialists start believing in their ability to grow,” he says.
The industrial businessman confidence index ranges from zero to 100. It usually oscillates at levels close to 60. Whenever it drops lower than 60, it is a sign that confidence is running low.
*Translated by Gabriel Pomerancblum
