By Arkady Petrov
RIO DE JANEIRO, BRAZIL – The Industry Confidence Index (ICI) of the Getulio Vargas Foundation (FGV) fell 0.7 percent in May to 97.2 percent, according to a survey released on Tuesday, May 28th.
With the drop, the indicator canceled out the rise recorded in the previous month and returned to the March level, the year’s lowest.
“Industry expectations continued to worsen in May and now portray a slightly pessimistic business outlook for the coming months. As for the sector’s performance in the month, there are dubious signals,” said Aloisio Campelo Jr., Superintendent of Public Statistics at FGV IBRE.
The Capacity Utilization Level (NUCI) increased 0.8 percent, returning to the same level as in November 2018, at 75.3 percent.
The Current Situation Index (ISA) remained stable at 98.5 percent. The Expectations Index (IE) fell 1.5 percent, standing at 95.9 percent.
The indicator measuring the sector’s hiring prospects over the next three months dropped by 3.6 percent, exerting a major influence on the general index.
The share of companies forecasting an increase in the total number of employed personnel fell from 17.6 percent to 13.9 percent between April and May, while that of companies forecasting a decline rose from 16.8 percent to 17.1 percent of the total.
To a lesser extent, the indicator measuring entrepreneurs’ optimism regarding the evolution of the business environment in the six months also retreated, dropping from 100 percent in April to 98.4 percent in May, pointing to a slight pessimism.
The survey collected information from 1,109 companies between the 2nd and 23rd of this month.
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