(Source: Info-Prod Research (Middle East))
According to ANBA: Brazilian industrialists are less optimistic.
The Industrial Businessman Confidence Index (ICEI, in the Portuguese
acronym) dropped by 0.8 point in April compared with March and
reached 59.7 points. It was the third straight month of decline,
according to a survey disclosed by the National Confederation of
Industries (CNI) this Tuesday (19th). Compared with April 2010, the
index dropped by 7.2 points. The ICEI ranges from zero to 100.
Figures above 50 indicate confident businessmen. The ICEI in April
matched the historical average of the survey, and for the first time
since July 2009, the index dropped below 60 points. According to the
executive manager of the CNI Research Unit, Renato da Fonseca, this
indicates that businessmen are more concerned about the future of
the economy and their business. The reduced optimism may lead to
cuts on investment. "This may also affect job generation and reduce
the purchase of raw materials, which should slow down the pace of
industrial production even further," explains Fonseca. The survey
shows that only extractive industry businessmen are more confident,
at 63.1 points, as against 61.9 points in March. Optimism is the
lowest among industrialists in the sector of leather, wood and
various industries, in which indicators are at around 50 points.
According to Fonseca, the greater optimism of the extractive
industry is due to the heightened demand for commodities in the
foreign market and by various investments made in infrastructure in
the country. "The oil and iron ore sectors are the ones that benefit
the most from this scenario," adds the economist. The decline in the
ICEI is a result of the assessment, by businessmen, of the current
conditions of the Brazilian economy. The indicator reached 48.5
points, below 50, which shows lack of confidence. In March, the
indicator recorded 49.9 points. Regarding the current conditions of
their own enterprise, industrialists remain confident. The index
reached 51.6 points in April as against 53.2 points in March. The
expectations for the economy in the coming six months are also
optimistic. The indicator reached 59.9 points in April, 0.6 point
below the index for March. The expectation regarding own businesses
reached 66.6 points in April as against 66.8 points in March. The
CNI survey shows that the decline in businessmen optimism in March
occurred across businesses of all sizes, and in all regions of the
country. Average companies had the highest decline, from 59.3 points
in March to 58.1 points in April. The North region, which recorded
an increase from February to March, had the strongest decline in
April compared with the previous month. The indicator for the region
went from 64.2 points to 59.9 points during the period. The ICEI
survey was conducted from March 31st to April 14th, among 1,957
companies. Of those, 1,072 were small, 601 were average and 284 were
large.
Originally published by Info-Prod Strategic Business Information.
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