Economic data boost confidence in almost all industrial sectors, says CNI

The Industrial Business Confidence Index by sector (ICEI), released this Friday (19), rose in 26 of the 29 industrial sectors from July to August this year. The increase occurred in all five regions of Brazil and in all sizes of industry (small, medium and large companies).

According to the report produced by the National Confederation of Industry (CNI), the greatest advances in confidence took place in the sectors of Leather and leather goods (+7.1 points), Biofuels (+4.6 points) and Metal products ( +4.2 points).

All industrial sectors recorded an improvement in the assessment of the current conditions of the Brazilian economy, and 20 of them made a transition from a perception of a worsening of the Brazilian economy, in July, to a perception of an improvement in the economy, in August, according to the entity.

“The improvement in business confidence is associated with two factors: the recovery of the economy, which has been taking place since the first half of the year, and the exemptions that have occurred in items that widely affect the industrial sectors and have been putting pressure on production costs, such as energy and fuels, providing some relief from this cost pressure that has been hampering Brazilian industry for some time,” explains CNI economist Larissa Nocko.

According to the confederation, in only three sectors there was a drop in confidence between July and August: Maintenance, repair and installation of machinery and equipment (-2.5 points), Cleaning products, perfumery and personal hygiene (-1.8 points ) and Machinery and equipment (-0.3 point).

With regard to confidence by company size, the index showed an increase in all company sizes in the industrial sector, especially in medium-sized companies (+2.8 points), followed by large companies (+2.4 points) and small companies (+1.8 points).

Region

Breaking down by region, the survey showed an increase in confidence in all areas of the country. The Midwest leads with +3.5 points, followed by the North (+3.1 points), South (+2.2 points), Northeast (+2.2 points), and Southeast (+2.1 points) .

“With the exception of the North region, whose entrepreneurs already noticed an improvement in the economy in July, entrepreneurs from the other regions made a transition from a perception of a worsening of the Brazilian economy to one of an improvement in the economy, in the transition from July to August”.