The perception of trade about the country’s business and economy is more pessimistic in the capital of São Paulo, according to FecomercioSP.
The sector’s confidence index calculated by the entity fell by around 1% in August compared to the previous month.
There was also a monthly drop in the intention to expand the business, in the expectation of hiring employees and in the level of investment by companies. When the comparison is made with last year, the indicators are at a higher level.
The entity attributes the worsening to the increase in interest rates, household indebtedness and inflation, a scenario that adds to the uncertainties generated by the approach of the elections.
The shortage of the global chain and the inflation of costs have generated problems in the replacement of inventories, which causes losses in the profit margins of the companies. The inventory index is down more than 1% this month compared to July.
Joana Cunha with Paulo Ricardo Martins and Diego Felix
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