Confidence in Brazil’s industry reaches its maximum in 5 months in May, shows FGV

The confidence of the industry in Brazil advanced to the highest level in five months in May in the face of an improvement both in the perception of the current moment and in the expectations for the coming months, informed the Fundação Getúlio Vargas (FGV) this Friday (27).

Data showed that the Industry Confidence Index (ICI) rose 2.3 points from last month to 99.7, the highest since December 2021 (100.1 points).

“There was an increase in satisfaction with the current business situation, with very favorable assessments regarding the current level of external demand”, explained FGV IBRE economist Aloisio Campelo Jr. in note.

“The Expectations Index grew widely across sectors, but the magnitude of the rise was influenced by the expressive recovery of optimism among non-durable goods producers.”

The Current Situation Index (ISA), which measures the sentiment of entrepreneurs about the present moment of the industrial sector, rose 1.6 points in May, to 100.4 points, according to FGV.

The Expectations Index (IE), an indicator of the perception of the coming months, gained 3.0 points, to 99.0. Both return to the highest level since December 2021.

According to Campelo, the only use category that registered an increase in pessimism in May was durable goods, which is directly related to the gradual increase in interest rates.

Data released earlier this month by the IBGE showed that industrial production in Brazil advanced 0.3% in March, the second consecutive high, but ended the first quarter with a loss of strength, giving new signs of difficulties in resuming amid the tightening of financial conditions. and monetary, in addition to the increase in costs.