Entrepreneurs’ Confidence Sees Sharpest Drops in Five Years

RIO DE JANEIRO, BRAZIL – The Trade Entrepreneur Confidence Index (ICEC) dropped 5.3 percent between March and April. It is the second successive decline and the largest percentage drop since April 2015, at 6.4 percent. The data was released yesterday, April 29th, by the National Confederation of Trade in Goods, Services and Tourism (CNC).

The drop compared to April 2019 was 3.6 percent. According to the CNC, the optimism of commercial entrepreneurs was strongly influenced by the economic crisis caused by the novel coronavirus pandemic (covid-19).

Compared to March this year, there was a 5.1 percent drop in confidence compared to the current moment, 6.3 percent in expectations and 3.2 percent in investment intentions. The components that witnessed the sharpest drops were confidence in the current economic climate (7.2 percent) and confidence in the future of the economy (7.7 percent).

Compared to April 2019, confidence fell by 1.1 percent over current conditions and by 7.5 percent over expectations. Investment intentions remained stable.

Source: Agência Brasil