FGV: Business confidence remains stable in May compared to April, at 90.9 points

The Business Confidence Index (ICE) of the Brazilian Institute of Economics of Fundação Getulio Vargas (Ibre/FGV) remained stable (0.0 point) in May compared to April, at 90.9 points, after two months of declines, in the seasonally adjusted series. In the quarterly moving averages metric, the index fell 0.5 points.

"Among its components, the persistence of the Current Situation Index in the range of 93 points for the sixth consecutive month suggests a relative stability in the aggregate level of activity of the segments surveyed. The increase in the Expectations Index interrupts the downward trend observed in the previous two months", assessed researcher Aloisio Campelo Jr., from Ibre/FGV, in an official note.

"Still, the trajectory of confidence in the coming months remains uncertain and will likely depend, among other factors, on the developments in the conflict in the Middle East and its impacts on the Brazilian economy."

The Current Business Situation Index (ISA-E) fell 0.1 point, to 93.1 points. The Business Expectations Index (IE-E) grew 0.2 points, to 88.8 points.

Within ISA-E, there was a worsening in the perception of the current business situation, with a drop of 0.4 points, to 91.6 points, while the current demand indicator rose 0.2 points, to 94.7 points.

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Among the components of expectations, the indicator of optimism with demand in the following three months rose 0.3 point, to 88.5 points, and the indicator on business developments six months ahead increased 0.1 point, to 89.2 points.

Two of the four major sectors showed an increase in confidence in May: Industry, 1.1 point; Services, 0.9 points; Construction, 0.0 point; and Commerce, -2.0 points. In April, 55% of the 49 segments surveyed reported an increase in confidence.

Data collection for the May edition took place between the 1st and 26th of the month.

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Source: CNN