Industrial confidence in Brazil drops after a three month high

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The Industrial Confidence Index (ICEI) stood at 53.1 points in April, down from 0.9 points in March, reported the National Confederation of Industry (CNI).

The drop comes after three consecutive increases; however, the index remains above the 50-point dividing line, which signals optimism. Compared to the same month of last year confidence increased by 16.3 points, when it was deeply rooted in pessimistic territory at 36.8 points.

According to the CNI, the index fell against March due to increased pessimism regarding business expectations and the Brazilian economy, falling 59.8 points to 58.9 points and 54.6 points to 52.5 points, respectively.

The index that measures current conditions of businesses and the economy was near the same level, dropping only 0.3 points. However, this measure remains below the 50-point threshold, which separates pessimism from optimism, at 46 points, signalling negative sentiment of business owners.

The Industrial Confidence Index (ICEI) surveyed 2,952 companies (1,172 small enterprises 1,106 medium-sized enterprises and 674 large enterprises) between April 3 and 17.

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