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Business confidence plunges 3 points to 89,6 in June.

The Trade Confidence Index, measured by the Getulio Vargas Foundation (FGV), fell 3 points from May to June, reaching 89,6 points on a scale of 0 to 200 points; with this result, the indicator returned to the level recorded in September 2017.

People walk past a store on a commercial street in São Paulo 04/12/2014 REUTERS/Paulo Whitaker (Photo: Paulo Emílio)

Vitor Abdala, reporter for Agência Brasil - The Trade Confidence Index, measured by the Getulio Vargas Foundation (FGV), fell 3 points from May to June, reaching 89,6 points on a scale of 0 to 200 points. With this result, the indicator returned to the level recorded in September 2017.

The drop in confidence affected business owners in eight of the 13 retail sectors surveyed. The Current Situation Index, which measures business owners' opinions regarding the present moment, fell 2,2 points to 87,2 points – the lowest level since December 2017 (85,6 points).

The Expectations Index, which measures confidence regarding the coming months, fell even further: 3,8 points. With this, this sub-index reached 92,4 points, the lowest value since August 2017 (89,6 points).

According to FGV researcher Rodolpho Tobler, the drop in confidence shows that the recovery the sector had been experiencing until the beginning of 2018 began to lose momentum in the second quarter. "[This is due] to the slow pace of the economy, the timid progress of the labor market, and the truckers' strike in May," he said.