Industry Confidence Index up in November

The Industry Confidence Index, gauged by the Getúlio Vargas Institute (FGV), rose 3.6% in November compared to October. The index mounted from 82.6 to 85.6 points, the highest level since June.

The increase comes as a result of a more favorable view regarding business in November. After six consecutive contractions, the Present Situation Index grew 8.3%, reaching 85.9 points—also the highest rate since June. The percentage of companies that rate the current situation as good climbed up from 7.8% to 12.8%, whereas the group of enterprises that regard it as poor dropped from 33.4% to 29.2%. The Expectations Index, in turn, fell 0.6% to 85.4 points.

The Indicator for Expected Employment declined 2.7% from the previous month. A reduction from 14.5% to 12.2% was observed in the percentage of companies that predict a rise in the number of employed personnel in the following three months. Firm predicting a decrease in the number of employees grew from 19.7% to 20.0%.

The Level of Capacity Utilization was reported at 82.7% in November, which stands for an uptick from October, when the rate had been 82%.

Translated by Fabrício Ferreira