Industry confidence drops for the 5th consecutive month, points out FGV Ibre

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Brazilian industry confidence dropped for the fifth consecutive time in December. The drop was influenced both by the current situation in the industrial sector in the country and by more cautious expectations for companies in the area in the year 2022. The data were released this Monday (27) by the Brazilian Institute of Economics of the Getúlio Vargas Foundation, the FGV Ibre.

This month, the Industry Confidence Index (ICI) scored 100.1 points. The indicator dropped 2.0 points compared to the last release, in November (102.1). The result is also the worst assessment pointed out by the institution since August 2020. At the time, 98.7 points were registered. ICI is measured on a scale from zero to 200.

According to the economist at FGV Ibre, Cláudia Perdigão, the data are a reflection of the problems faced by the industry throughout 2021, such as pressure on costs, scarcity of inputs and high uncertainty. “Furthermore, unemployment and inflation compress household demand, reducing demand, which not only influences the assessment of the current situation, but also makes the projections for 2022 more cautious”, he adds.

The specialist also draws attention to possible consequences obtained by the performance of the industrial area this year, which should reflect in the category in the coming months. “The sector ends 2021 with still unresolved bottlenecks, inciting a retreat in expectations”, he claims.

Despite the outlook, in general, not very optimistic, the economist says that some problems must be resolved. “On the scarcity of inputs, normalization is expected from the second half of next year”, he highlights.

*Under supervision of Thayana Araujo

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Reference: CNN Brasil

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