Rio de Janeiro – Investments were up 1.6% in Brazil in May from the previous month. Year-on-year growth reached 0.5%. The figures from the Monthly Indicator of Gross Fixed Capital Formation (FBCF in the Portuguese acronym) were made public on Monday (2) by the Institute of Applied Economic Research (IPEA). The indicator comprises purchases of machinery and equipment, construction, and other fixed assets. It’s an indicator of the country’s productive capacity.
IPEA says that the rise in investments in May means a slightly rebound from the decrease of 17.4% seen in the previous month. In the three months through May, the indicator posted a 19.2% drop from the previous three-month period through February. Nevertheless, the indicator posted a 20% year-on-year increase. In the 12 months through May, investments were up 7.2%.
The author of study, IPEA researcher Leonardo Carvalho, stressed that overall, in terms of confidence, by looking at the results of surveys from the Getulio Vargas Foundation (FGV) and Brazilian National Confederation of Industry (CNI), you can see a quite positive level of business confidence in the capital goods, machinery and equipment industry, as well as construction.
Translated by Guilherme Miranda
