Several Indexes Show Brazil’s Industry Confidence Dropping

Factory in Diadema, São Paulo, Brazil Brazil's Industrial Confidence Index (ICI), as measured by the Getúlio Vargas Foundation (FGV), had the lowest variation in the last four months, having decreased by 2.2%, from 123 to 120.3 points from late August to early September.

In comparison with September last year, the confidence index was 1.9% lower, but compared with August 2007, it rose by 0.9%.

According to the FGV, the reduction points to "a slowdown in the pace of industrial activity in September." Other surveys on the sector's behavior point to a slowdown as well: the Current Situation Index saw a reduction of 2.5%, from 124.4 to 123.3 points, and the Expectations Index decreased 1.1%, from 121.5 to 117.3 points.

The survey shows that there were more companies with excess inventory levels (5%) than with insufficient ones (2%). The survey also shows that, even though the majority of companies surveyed plan on increasing job openings, there is greater caution now than in the previous survey.

Of the 1,042 companies surveyed, 32% consider hiring further personnel over the next three months and 6% manifested an intention of dismissing employees. In September last year, 37% stated that they were going to hire, and 7% claimed that they were going to dismiss workers.

ABr

Tags:

You May Also Like

Brazil: Studies for Big Gas Pipeline to Be Ready in July

The presidents of Brazil, Luiz Inácio Lula da Silva, Venezuela, Hugo Chávez, and Argentina, ...

Brazil to Get a BB- for Global Bond Due 2037

Fitch Ratings has assigned a prospective ‘BB-‘ rating with a Positive Outlook to Brazil’s ...

The US Plan to Prevent Brazil from Becoming a New Cuba

Declassified documents prove that the United States was planning a military coup in Brazil ...

Despite Loss in Venezuela, Brazil’s Petrobras Has Record Profit

Brazilian state-controlled oil company Petrobras ended 2006 with a net profit of 25.9 billion ...

Over 7% of Brazil’s Treasury Bonds, US$ 55 Billion Worth, Are in Foreign Hands

The amount of Brazilian treasury bonds in foreign hands reached a record figure in ...

Brazil’s Lula Wants a World Where Poor Benefit from Globalization

Brazilian President Luiz Inácio Lula da Silva said on his speech, during the opening ...

Brazil’s Failing Popular Housing Program Shows a Government Out of Touch with Reality

In 2011 it became increasingly apparent that the Brazilian property market is unlikely to ...

Brazil’s Textile Industry Shows US$ 47 Million Trade Balance Deficit

Brazil's textile and garment production sector ended the first month of 2009 with a ...

Brazilian Congress Calls for Defense Minister’s Head Following Airports’ Chaos

Brazilians senators have transformed the Senate floor, this Wednesday, December 6, in a stage ...

The Flogging and Crucifixion of Jobim in Brazil

December 8, ten years ago, exactly fourteen years after John Lennon’s assassination, Antonio Carlos ...