Mon, 28 Sep 2020

Brazil's industrial confidence rebounds in August

13 Aug 2020, 07:18 GMT+10

BRASILIA, Aug. 12 (Xinhua) -- Brazil's industrial sector began to shake off some of the pessimism caused by the novel coronavirus pandemic to show a generalized uptick in confidence this month, the National Industry Confederation (CNI) said on Wednesday.

Its Industrial Entrepreneurs' Confidence Index (ICEI) reached 57 points in August, on a scale of zero to 100, after having fallen to 34.5 in April.

Anything over 50 is considered to reflect confidence in the sector, while anything under 50 points indicates pessimism, according to the CNI.

August's results show "confidence has returned generally," the industry group said.

The growth in confidence is mainly due to increased expectations for the next six months among business owners, an indicator that reached 62.1 points, said the CNI.

However, the assessment of the current economic situation was still negative compared to the past six months, standing at 46.9 points.

The ICEI for August represents an increase of 9.4 points compared to July, when it was at 47.6 points, but falls below August 2019, when the index stood at 59.4 points.

CNI's director of industrial development, Carlos Abijaodi, said the worst of the pandemic crisis has passed, although he still perceives the economic situation to be negative compared to the last six months.

"There is a perception of improvement in the business environment, due to progress in tax reform and the government's willingness to reduce costs," Abijaodi said.

The CNI survey was carried out between Aug. 3 and 7, and queried 1,284 companies of all sizes and branches of production.

More Brazil News

Access More

Sign up for Rio de Janeiro News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!