The Business Confidence Index (ICE) rose 2.2 points in August compared to July, to 100.7 points, informed this Wednesday (31) the Fundação Getulio Vargas (FGV).
As a result, the indicator resumes the upward trend started last March, according to the institution. “For the first time since the beginning of the pandemic, the level of confidence of the four major sectors monitored is approaching, signaling a healthy normalization of activities after a crisis that affected the different economic segments in a very heterogeneous way”, says Aloisio Campelo Júnior, superintendent of Public Statistics of the Brazilian Institute of Economics at FGV (Ibre/FGV), in an official note.
He points out, however, that the improvement in expectations in the month did not compensate for the worsening of the previous month. “With this, the IE remains below 100 points, with optimism on the horizon of three months and pessimism six months ahead”, he says.
The Business Confidence Index gathers survey data from Industry, Services, Commerce 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). 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 1.0 point in August compared to July, to 101.3 points, the highest level since September 2013. The Expectations Index (IE-E) advanced 1.5 point, to 99.1 points.
From July to August, confidence in services dropped 0.2 points, to 100.7 points, and that of commerce rose 4.3 points, to 99.4 points. Industry rose 0.8 points to 100.3 points, while construction increased 1.4 points to 98.2 points. In August, confidence increased in 63% of the 49 segments that make up the ICE.
The collection of the Business Confidence Index gathered information from 4,023 companies in the four sectors between August 1st and 26th.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
