Rio de Janeiro – The declining Brazilian industrial activity and uncertainty surrounding the world economy have caused businessman to forecast lower-than-expected growth in 2012. The conclusion was drawn from the October-November edition of the Industrial Investment Survey issued this Wednesday (21st) by the Getulio Vargas Foundation (FGV).
According to the survey, 50% of enterprises plan on spending more next year, in fixed capital terms, as against 55% in the same period of last year.
The share of those projecting lower investment rose from 15% to 17% when compared with October-November 2010. Among companies projecting higher disbursements next year, in fixed capital terms, 36% expect an increase ranging from 5.1% to 10%, as against 33% last year.
Out of all companies, 24% expect to increase investment by 10.1% to 20%, the same rate as last year’s. Another 20% forecast an increase in investment ranging from 0.1% to 5%, as against 17% last year. An increase higher than 20% was projected by 20% of all enterprises, a rate lower than last year’s 26%.
Businessmen are also less optimistic regarding revenues in 2012. The rate of companies expecting an increase in sales dropped from 72% to 69%, whereas the rate of companies expecting a decline in revenues rose from 6% to 8%.
The Investment Survey is a quarterly statistical survey which points to the direction of investment in industrial production. The survey covered 880 companies from October 5th to November 30th.
*Translated by Gabriel Pomerancblum
