Rio de Janeiro – The Indicator of Industry Investment Intent, measured by Fundação Getulio Vargas (FGV), slid 3.1 points in Q3 2018 over the previous quarter. With the second straight decline, the indicator came to 113 points in a zero to 200 scale, the lowest level since last year’s Q3 (105.1 points).
The indicator anticipates economic trends in the country based on the investment intent of the industry. Despite the fall, the indicator remained above the 100 points, the threshold in which the share of companies willing to invest in the next 12 months overcomes the share of those not willing.
From Q2 to Q3 of this year, there was a decline in the share of companies willing to invest, from 28.9% to 28.3%, and an increase of the share of those willing to cut investments, from 12.8% to 15.3%. According to economist Aloisio Campelo Jr., the decline in the industry’s intention to invest is a sign of a loss of momentum of the Brazilian economy this year.
Translated by Sérgio Kakitani
