• Categories
  • Archives

Brazilian Industry’s Confidence in Economy Falls Again to a 3-Year Low

Brazil’s Industrial Entrepreneur’s Confidence Index (Icei), announced yesterday, July 19, by the National Confederation of Industry (CNI), dropped for the second quarter in a row, to its lowest level since October, 2002.

According to the economic coordinator of the CNI, Flávio Castelo Branco, the decline “reflects the atmosphere of uncertainty that has pervaded the political sector in the last two months, as well as the deceleration of the economy over the course of the first semester in consequence of higher interest rates.”


According to the CNI bulletin, the index reached 50.7 points, 5.1 points lower than in April and 14.2 points lower than in January, when the index stood at 64.9 points.


Despite the drop, an Icei above 50 points is still considered an indication of entrepreneurial confidence, despite the more modest growth in economic activity in the first half of the year in comparison with the same period of 2004, as illustrated by the fact that the economic reference index was also down, from 62.7 points in January to 45.9 points in April and now to 36.4 points.


There was also a decline in entrepreneurs’ expectations regarding the resumption of production activities in the coming semester, from 60.6 points in April to 55.7 points at present.


But the CNI economist observes that, although the indicators are not as high as in previous months, they still remain high, and this suggests that expectations with respect to company performance continue to be positive.


According to Castelo Branco, confidence is the basic element in investment decisions.


“A decline in confidence can indicate indecision when it comes to resuming some industrial investment projects. Nevertheless, it is possible that, despite this, we are just experiencing a momentary situation and that, with the revival of the economy in the second half of the year, a reactivation of investments is possible.”


ABr – www.radiobras.gov.br

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazilian Doing Brisk Business Selling Tiles Made from Plastic Bottles

It was 12 years ago that Brazilian engineer Luiz Antônio Pereira Fomariz from the ...

Brazilian Costume Jewel Maker Camila Klein Plan to Win the World

Brazilian costume jewelry by Camila Klein has been wining women world over or four ...

A Logo and a Plan to Make Brazil a Top Tourist Destination

Brazilian tourism and the main Brazilian export products may now speak the same language, ...

Tourism and Goat Farming, Priorities of Brazil’s Bank of the Northeast

Micro and small companies in the Northeast of Brazil remain among the main focuses ...

Brazil’s Gift to the World in 2009: Lowest Amazon Deforestation in 20 Years

According to Brazil's first National Inventory of Greenhouse Gases, up to 75% of Brazil's ...

Brazil Working Girls Go to English School in Time for World Cup

Taxi drivers and bellboys aren’t the only ones going back to school to learn ...

How Do You Spell ABC?

The 1988 Brazilian constitution recognizes the right to a public and free education of ...

Brazil’s Lula Tells His Presidential Candidate Rousseff to Act as Mother of the Poor

Brazilian president Luiz Inácio Lula da Silva compared candidate Dilma Rousseff to a mother ...

Brazil Minister Says Country Won’t Change Exchange Despite Dollar Inflow

Brazil's minister of Finance, Guido Mantega, attributes the great interest in foreign investment in ...

Naked model Janaí­na Ribeiro protests Bush's visit to Brazil

Violent Protests and Naked Beauty Welcome Bush in Brazil

Pretty girl Janaí­na Bueno, 25, who presented herself as an actress and model, was ...