Industry regains confidence in the economy.
The confidence index of the sector represented by the National Confederation of Industry (CNI), chaired by Robson Andrade, grew 1,2% in November after remaining in decline for five consecutive months.
Marli Moreira
Reporter from Agência Brasil
São Paulo - After remaining in decline for five consecutive months, the Industrial Confidence Index (ICI) grew 1,2% in November, rising from 97,8 to 99 points, the same level as last August. Despite this increase, optimism in the sector is still below the historical average (103,6 points).
The data comes from the Manufacturing Industry Survey, conducted by the Brazilian Institute of Economics (Ibre) of the Getulio Vargas Foundation (FGV), which assesses the perception of business owners in the sector regarding the economy month by month, taking into account quarterly results. The best improvement occurred in the Current Situation Index (ISA), with an increase of 1,8% and 99,9 points compared to 98,1.
The sentiment regarding the Expectations Index (IE) was also positive, reaching 98,1 points, or 0,6% above the previous measurement (97,5 points). The FGV technical report considers that "the period of successive declines in confidence may be behind us." According to the foundation's economists' estimates, the industry should show improved performance at the turn of the third to the fourth quarter. They note, however, that the pace of activity is still weak to moderate.
The survey, which involved consultations with 1.241 companies between the 4th and 22nd, showed greater satisfaction regarding the possibilities for growth in demand, both in the domestic market and in terms of orders from abroad. The satisfaction indicator rose 3,8%, reaching 99 points, the highest mark since June.
Of the total respondents, 13,9% rated the level of demand as strong, a percentage higher than the previous figure (13,3%). At the same time, the proportion of those who considered the level weak fell from 17,9% to 14,9%.
Regarding the intention to hire more employees, the index grew by 2,6%, reaching 107,1 points, the best level since June. The percentage of companies intending to expand their workforce rose from 14,8% to 20,6%, and the number of companies planning to make cuts increased from 10,4% to 13,5%.
The capacity utilization rate (Nuci) showed a slight increase, exceeding the previous figure by 0,2 percentage points. The number rose from 84,1% to 84,3%, the highest mark since last July.