São Paulo – After showing little optimism in November, industrialists have recovered their enthusiasm, in December, according to the Processing Industry Survey, conducted by the Brazilian Economics Institute (Ibre) of the Getulio Vargas Foundation (FGV). During the period, the Industry Confidence Index (ICI) reached the best score in the second half, having gone from 112.7 points to 114.5 points, an increase of 1.6%.
The result is a measure of the perception of sector’s current performance and of expectations regarding the country’s short term economic development, in inquiries made to 1,196 companies, with combined revenues of 625.9 billion reals (US$ 369.8 billion). The good development of business helped revive businessmen optimism.
The Current Situation Index (ISA), one of the components of the ICI, reached 116.2 points as against 114.7, in November, an increase of 1.3%, ending a sequence of seven consecutive declines since April this year, the month in which the industry recorded the highest satisfaction score this year (120 points).
The Expectation Index rose by 1.9% and reached 112.8 points as against 110.7. Out of all those surveyed, 31% expressed intentions of increasing the number of employees by February 2011. The rate is higher than the one recorded in November (28.6%).
*Translated by Gabriel Pomerancblum
