Brazilian Industrialists Show Very Cautious Optimism

After expressing uncertainty over the directions of the Brazilian economy in July, Brazil’s industrialists raised their spirits in the beginning of October.

But the sector remains cautious when it comes to deciding to invest more in production, according to the preliminary findings of the Conjunctural Survey of Manufacturing Industry, conducted by the Getúlio Vargas Foundation’s (FGV) Brazilian Economics Institute (Ibre).

The study is carried out on a quarterly basis, and the results announced Thursday, October 13, reflect opinions gathered between September 29 and October 10 from representatives of 417 companies in 24 states. Most of the companies are medium or large-sized, and their combined annual sales amounted to US$ 79 billion in 2004.

When asked about the current business situation, their answers show a degree of balance, unlike the previous survey, when a much larger number considered the situation to be weak.

In July, 37% of the respondents regarded the business situation as unfavorable, while 14% expressed optimism. This month 22% regard the situation as weak, while 21% see it as good.

According to the study, the companies are doing a better job in turning over their merchandise. While 2% in both surveys said that inventory was inadequate, the percentage claiming stocks to be excessive fell from 19% to 13%.

When the data are cross-checked, it is possible to observe that the industries indeed increased their sales: The percentage who indicated a weak level of demand dropped from 34% to 21%, and the percentage who evaluated the period as one of strong demand rose from 9% to 11%.

Other indicators of a growth trend are the forecasts for the next three months: The percentage indicating that they plan to hire more workers rose from 21% to 24%, while the percentage intending to cut their staff decreased from 22% to 16%.

"This is the third best result in the last seven years for decisions on job creation," observed the economist Aloí­sio Campelo, coordinator of the study.

The Ibre survey also indicates caution when it comes to decisions to expand production: 38% responded affirmatively, as against 45% in the previous survey, and the percentage who forecast a reduction rose from 19% to 28%.

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Your email address will not be published.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

Cover Story

As predictable and as traditional as New Year’s celebrations on Rio’s beaches, just-released Roberto ...

Why We Failed: Brazil and World Politicians Can’t See Humanity, Only Voters

Everyone knows that the Copenhagen meeting failed in its attempt to impede the climate-change ...

Shrinking Global Markets Draw Businesses to Brazil and LatAm

Brazil in particular as well as other Latin American countries continue to be attractive ...

Brazilian Gol Flies 32% More People and Gets Help from Weak Dollar

Brazilian Airline Gol saw a demand on it route network grow by 32.1% in ...

In Brazil, Half of All New AIDS Victims Are Between 13 and 24

Since the 1980s, when AIDS first appeared, more than 10,500 children under the age ...

Brazil: EU to Eliminate Surtax to Mercosur Products

The trade negotiations now underway between Mercosur and the European Union, which are scheduled ...

Brazilian Jet Delivered to Dubai Comes with High-Speed Internet

Embraer, the Brazilian aircraft manufacturer based in the city of São José dos Campos, ...

Brazil’s World Cup Law Guarantees Plenty of Booze and Holidays

Brazil’s 2014 World Soccer Cup law approved yesterday, March 28, by the Brazilian House ...

The Sinking of the SS Sarney

By giving Roseana Sarney its unqualified support her own party left voters with the ...

Brazilian Expatriates Are a Main Reason for Less Poverty in Brazil

Despite some progress over the past two years, poverty in Latinamerica and the Caribbean ...