Business confidence rises 1.4 points in June, shows FGV

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The Business Confidence Index (ICE) rose 1.4 points in June compared to May, to 98.8 points, informed this Friday (1st) the Fundação Getulio Vargas (FGV).

As a result, the indicator grew by 7 points in the second quarter of 2022, after an accumulated decline of 8.2 points in the two previous quarters.

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“Business confidence has advanced for the fourth month in a row, approaching the neutral level of 100 points and signaling the continuity of the growth phase of activity”, evaluated Aloisio Campelo Júnior, Superintendent of Public Statistics at the Brazilian Institute of Economics at FGV (Ibre/FGV). ), in an official note.

The Business Confidence Index gathers survey data from Industry, Services, Trade and Construction. The calculation takes into account the weights proportional 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).

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According to FGV, the objective is for the ICE to allow a more consistent assessment of the pace of economic activity.

The Present Business Situation Index (ISA-E) grew 1.9 points in June compared to May, to 100.0 points. The Expectations Index (IE-E) advanced 1.6 points to 99.7 points.

“Contrary to the previous months, in which the Services Sector had been pushing up the ICE, this time the other sectors made a more expressive contribution to the evolution of the indicator. Business expectations are neutral in relation to the next quarter, but present a slightly pessimistic bias in the six-month horizon, a sign that the productive sector projects a slowdown in activity over the second half of the year”, added Campelo Júnior.

All the major sectors that make up the ICE showed improvement in confidence in June, with emphasis on the performance of assessments over the current moment.

Only services had a more expressive contribution from the component of future expectations, pointed out the FGV.

Confidence in services increased 0.4 points to 98.7 points, and commerce increased 4.6 points in June compared to May, to 97.9 points.

Industry rose 1.5 points to 101.2 points, while construction increased 1.2 points to 97.5 points.

“Despite the favorable evolution in all sectors, only the confidence of the Industry reaches the neutrality range at the end of the first half of the year”, stressed the FGV.

In June, confidence increased in 31 of the 49 segments that make up the ICE. The collection of the Business Confidence Index gathered information from 3,896 companies in the four sectors between June 1st and 27th.

Source: CNN Brasil

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