Small business confidence advances for the fourth consecutive month, says Sebrae

For the fourth consecutive month, micro and small business owners (SMEs) are more optimistic about the direction of business, according to the May Survey of Economic Survey of Micro and Small Businesses, carried out by Sebrae in partnership with Fundação Getúlio Vargas ( FGV).

Commerce was the most prominent among the sectors surveyed.

In May, the Confidence Index for Medium and Small Enterprises (IC-MPE) advanced 1.8 points compared to April, reaching 98.1 points, the highest level since October 2021, when it stood at 98.9 points .

The continued recovery of confidence was observed in all sectors surveyed: Trade, Services and Manufacturing Industry.

“The mood of entrepreneurs in this segment, for the fourth consecutive month, was influenced both by the current situation and by short-term expectations. The non-compulsory use of masks and vaccination certificate generates greater circulation of people. In addition, the extension of Pronampe, which is intended to generate credit for the recovery of MSEs, also weighed in on this result”, points out the president of Sebrae, Carlos Melles.

According to the survey, the performance of Trade was leveraged by the sectors of vehicles, motorcycles and parts (auto parts stores and small dealerships), followed by retail of non-durable goods.

Trade confidence rose influenced by the improvement in indicators of current demand and forecast sales.

After falling in April, the confidence index for this segment rose again in May — jumping from 5.5 points to 91.4 points, the highest level since October 2021 (92.9 points).

According to the survey, entrepreneurs see a more favorable perspective in the short term, as well as the current situation, driven by the improvement in May sales. Also according to the survey, all regions recorded an increase in May 2022, especially the Northeast.

“Despite the good numbers, the study shows that entrepreneurs still have some fear about the future. Even with the visible improvement of the pandemic and the release of packages that relieve the financial pressure of families, challenges such as inflation, the increase in the Selic and the difficulty of returning to the market negatively impact the sector, especially low-income families”, highlights the president of Sebrae.

Cold heats up apparel sales

Driven by the arrival of the cold, sales in the clothing sector should hit R$ 13.7 billion this year, the highest volume since 2014, according to an estimate by the National Confederation of Commerce (CNC).

CNC chief economist Fábio Bentes explains that despite the volume of revenues still being 8% below the pre-pandemic period, there are signs of recovery. The expectation is that the movement will intensify during the month of June, especially in the Center-South regions of Brazil.