On the back of improving expectations, the Getulio Vargas Foundation’s Buisness Confidence Index (ICOM) rose 3.1 points between February and March, from 82.5 points to 85.6 points – the highest level since December 2014. In relation to March 2016, the index was 15 points higher.
“After the fourth consecutive monthly increase, business confidence is starting to emerge from its lows of the last two years,” says Aloisio Campelo Jr, Director of Public Statistics at the FGV-IBRE.
The rise in confidence was mainly due to the expectations index, which rose 4.1 points to 95.6 points, while the current situation index increased by 1.8 points to 76.1 points. The biggest contributions to improved expectations were optimism for sales in the next three months, which rose 5.7 points from the previous month. The increase in the current situation was down to satisfaction with buisness conditions.
“Favorable news such as the gradual recovery of consumer confidence, real interest rate prospects and the release of FTGS funds may have added to the trend, although the risks are still high given the level of uncertainty,” says Campelo.
The buisness survey gathered information from 1,133 companies between March 2 and 29.