Access to credit was the biggest difficulty for small industries in 2022, says CNI

Data from the Panorama of Small Industry (PPI) released by the National Confederation of Industry (CNI) this Monday (30) show a decline in the four indicators that analyze the performance of micro and small Brazilian industries in the last quarter of 2022: performance, financial situation , confidence and perspective.

However, despite the retraction, the indicators remained above the historical average. Furthermore, among the main problems in the last months of last year, businessmen reported dissatisfaction with access to credit and with the interest rate.

According to CNI Policy and Industry analyst Paula Verlangeiro, the decline in the last three months of 2022 was a seasonal issue and, even so, it was milder than that observed in the historical average of the period. “This fall occurred after a third quarter of positive performance for the small industry”, she points out.

The Performance Index closed the fourth quarter of 2022 with 44.3 points. When compared to the same period in the previous year (47.4 points), the indicator presents a reduction of 3.1 points. The historical average is 43.8 points.

The survey also shows a change in the ranking of the sector’s main problems. After almost two years, oscillating between the three main problems, the lack or high cost of raw materials is no longer the main nuisance.

In the last months of last year, businessmen complained more about the high tax burden and interest rates. Other challenges that stood out in the period were insufficient internal demand, excessive bureaucracy, unfair competition and difficulties in transport logistics.

access to credit

One point that draws attention in the survey is the Financial Situation Index, which showed a slight drop between November and December 2022, by just 0.7 points, closing the year with 43 points. When compared to the same quarter of 2021, this year showed an increase of 1 point.

Entrepreneurs from the three sectors (construction, transformation and extractives) stated that they were more dissatisfied than before with access to credit. For the CNI, getting the money is essential for the performance of MSEs, whether for restructuring or business expansion.

CNI’s Economic Policy manager, Fábio Guerra, says that the credit market scenario is challenging mainly due to interest rates. “Knowing well the information involved in this process can be decisive in the success of contracting credit and in the conditions of this contract, in terms of interest rate, terms, grace periods, guarantees, among other points”.

Another survey indicator, confidence, also dropped in the last quarter of 2022 and recorded 48.8 points. It is the first time since July 2020 that industrial MEPs report a lack of confidence. According to the report, this can influence their decision-making when making investments and hiring future employees.

The CNI bets that the prospects for the coming months are also below the 50-point line.