Small business confidence has highest level since 2013, survey shows

The Micro and Small Business Confidence Index increased by 2.7 points in August, compared to the previous month, and reached 100.6 points. As a result, it reached the highest level since 2013. The survey, produced by Fundação Getúlio Vargas (FGV) and Sebrae, showed that the mark was achieved, mainly, by the improvement in Trade Expectations and improvement in short-term prospects.

“In August, the confidence of micro and small companies returned to the recovery path started in February. Surpassing the 100-point mark indicates an expectation of an improvement in the economy and good prospects for trade. Resources made available by the government, the improvement of the job market and the deceleration of prices helped in this result”, comments the president of Sebrae, Carlos Melles.

The indicator aggregates the confidence indices of the three main sectors of the economy: commerce, services and manufacturing industry. The best performance was concentrated in Commerce, which grew by 5.4 points. The service sector had a positive result of 0.5 point, but has shown signs of stagnation around 100 points in recent months. The Manufacturing Industry fell for the second consecutive month. In August, the drop was 1.4 points.

The rise in the expectations index of micro and small companies for the next 3 to 6 months was the main influence on the positive result of the indicator, with a positive variation of 12.7 points, reaching 96.5 points. It is the highest level since February 2020 (102.8 points).

In relation to the current situation of MSEs in Commerce, there was a decrease of 2.1 points, reaching 101.9 points, the lowest level in the last four months. According to the survey, the data show a slowdown in the current situation of the sector, but, in the coming months, it should gain momentum due to government measures, such as the increase in Auxílio Brasil.