The Business Confidence Index (ICE) dropped 3.3 points in November compared to October, to 97.0 points, informed this Wednesday the Fundação Getulio Vargas (FGV). In quarterly moving averages, the indicator decreased by 1.8 point in the month.
“With the fall of November, business confidence confirms the declining trend outlined in September and put into doubt after the slight increase in October. The result is highlighted by the significant drop in the Expectations Index, the largest since March of this year, when the fear of the impact of the second wave of covid-19 on the economy was great”, assessed Aloisio Campelo Júnior, Superintendent of Public Statistics at the Brazilian Institute of Economy from FGV (Ibre/FGV), in an official note.
“This time, the biggest concern is the economy itself, which is in a slowdown phase under the influence of high inflation and the monetary tightening that has been conducted by the Central Bank to contain it.”
The Business Confidence Index gathers data from surveys in Industry, Services, Trade and Construction. The calculation takes into account the proportional weights to the participation in the economy of the investigated sectors, based on information extracted from the annual structural surveys of the Brazilian Institute of Geography and Statistics (IBGE).
According to FGV, the objective is for the ICE to allow a more consistent assessment of the pace of economic activity. The Business Current Situation Index (ISA-E) dropped 2.5 points in November compared to October, to 97.0 points. The Expectations Index (IE-E) retreated 4.5 points to 95.8 points.
The ISA-E level surpassed that of the IE-E for the first time since March of this year, highlighted the FGV. All major sectors that make up the ICE registered loss of confidence in the month. Industry confidence dropped 3.1 points in November compared to October, while construction dropped 0.8 point.
Confidence in services dropped by 2.3 points, while that in trade dropped by 6.2 points. In November, confidence increased by only 22% of the 49 member segments of the ICE.
The collection of the Business Confidence Index gathered information from 3,955 companies from the four sectors between the 1st and 25th of November.
Reference: CNN Brasil
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