Brazilian industrial confidence falls in November to the weakest level since mid-2020

The confidence of the industry in Brazil retreated strongly in November and reached the lowest level in almost two and a half years, in the midst of the worsening of the feeling of both the current and future situation, informed the FGV (Fundação Getulio Vargas) this Monday (28 )

The ICI (Industry Confidence Index) fell 3.6 points compared to the previous month, going to 92.1 points, the worst result since July 2020. It was the third fall in a row of the indicator.

“There is a deterioration in perceptions about the current situation due to a worsening demand and consequent increase in the level of inventories, the highest since the lockdown period”, explained FGV IBRE economist Stéfano Pacini, in a note.

“In addition, there is a worsening of expectations for the coming months, possibly related to a predicted global slowdown and a Brazilian economic scenario of uncertainties for the beginning of next year”, he added.

The ISA (Current Situation Index), which measures the sentiment of entrepreneurs about the present moment in the industrial sector, dropped 4.6 points, to 91.8 points, according to the FGV.

The EI (Expectations Index), an indicator of the perception of the coming months, fell by 2.4 points to 92.6 points.

Both were in November at the lowest level since July 2020, a critical lockdown period in Brazil due to the coronavirus pandemic.

In September, Brazilian industrial production fell again, with a drop of 0.7%, and ended the third quarter with a loss of pace, in a second half marked by difficulties amid tighter credit conditions, according to IBGE data.