Brazilian Executives Haven’t Been So Gloomy in Two Years

A survey by the Getúlio Vargas Foundation of the manufacturing sector (Sondagem Conjuntural da Indústria de Transformação) in July found that economic expectations among business leaders were the lowest since July 2003, when the country was coming out of a recession.

The survey interviewed 930 company directors between June 28 and July 25. 27% of those interviewed said that demand was weaker in July


The number of companies with high inventories jumped from 10% in April to 14% in July and although 44% of those interviewed said they expected improvements within the next six months, that number was down from 59% in July 2004.


According to Aloí­sio Campelo, an economist at the FGV, the survey results reflect feelings among business leaders that there will be a gradual downturn because of the government’s economic policies (high interest rates and devaluation of the dollar).


This decline in turn should reduce their profit margins (the percentage of those interviewed who said they intended to raise prices fell from 43% in the last survey, to 27%; and, significantly, the percentage who said they would probably reduce prices rose from 6% to 19%).


With regard to employment, 24% of those interviewed said they intended to contract more workers (down from 35%), and 15% said they would probably reduce their workforce (up from 8%).


Agência Brasil

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Your email address will not be published.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

What Will Happen to Brazil’s Astronaut Program? Brazil Doesn’t Know.

The president of Brazil’s Space Agency (Agência Espacial Brasileira) (AEB), Sergio Gaudenzi, says the ...

Brazil’s Ruling Party Plans “Great Transformation” to Win Elections

The “sub-imperialism” of Brazil, the arrogance of Brazilian businessmen and a more left wing ...

Brazil Sees China and India as Model and Threat

The challenges posed to Brazil by the development of China and India will be ...

Brazil’s Petrobras Strikes Gas Off Santos Coast

Brazilian state-controlled oil and gas multinational, Petrobras, announced that the Consortium formed by that ...

All the Americas in Brazil Drawing Plans for Bird Flu War

Luiz Carlos Guedes Pinto, the executive secretary at the Brazilian Ministry of Agriculture, says ...

After 10 Years and With a Hand from Brazil EU and LatAm May Reach Agreement

The European Commission president José Manuel Durão Barroso and Spanish president José Luis Rodríguez ...

Brazil Becomes Number 1 Market in EU Among Latin American Countries

According to a Latin Business Chronicle analysis of 2007 trade data from Eurostat, Brazil ...

Brazilian Pharmacy Program Lowers Drugs’ Price by Up to 90%

Brazilian President Luiz Inácio Lula da Silva says that the expansion of the "Farmácia ...

Brazil’s Petrobras Dreaming Of Deals with Japan and South Korea

The President of Petrobras – Petróleo Brasileiro S.A., José Eduardo Dutra, wants to attract ...

3.2 Million Foreigners Visit Brazil in First Half, a 2.7% Boost

In the first half of the year, 3,205,562 people arrived in Brazil on international ...