Confidence in Brazilian industry on the rise

The confidence of industrial investors showed an increase in July, according to a survey published Friday (Jul. 15) by the National Confederation of Industry (CNI). The confidence index in the sector stood at a 47.3 score this month—up 1.6 from June.

The index is experiencing a hike for the third consecutive month, with an accumulated raise of 10.5 points, 10.1 higher than July 2015.

Despite the performance, the index is still below the 50-point minimum which indicates confidence in the economy.

The lowest figure is found among small businesses—44.7 points. Medium firms showed a 46.7 score, whereas large-scale companies registered 48.8.

The indicator for the expectations of industrialists towards companies and the economy, however, hiked from 51.1 to 52.3 points in July—compared to the 42 score posted the same month last year.

CNI Executive Manager for Economic Policy Flávio Castelo Branco argues that “conditions should be brought about so that expectations may materialize.”

He advocated the fiscal adjustment, a pension reform, and the improvement of the access to credit, as well as a longer term for paying taxes.

Translated by Fabrício Ferreira