The index that measures industrial confidence in Brazil had its fifth consecutive fall in December, closing the year at the weakest level in more than a year, with a less favorable assessment of the current situation and more cautious expectations for 2022.
The Industry Confidence Index (ICI) retreated 2.0 points this month, to 100.1 points, its lowest level since August of last year (98.7), showed data released this Monday (27) by the Getulio Foundation Vargas (FGV).
“This result is explained by problems that extended throughout the year, such as pressure on costs, scarcity of inputs and high uncertainty,” explained FGV IBRE economist Claudia Perdigão, in a note.
She also highlighted that unemployment and inflation, responsible for the fall in the purchasing power of families and, consequently, in demand, have an influence both on the assessments of the current situation and for the coming months.
The Current Situation Index (ISA), which measures sentiment towards the present, dropped 2.7 points, to 101.0 points, the lowest since August 2020 (97.8).
The Expectations Index (IE), an indicator of the perception of the coming months, dropped 1.2 points to 99.1 points, the lowest level since May this year (99).
The Installed Capacity Utilization Level —present indicator of whether the industry is producing at full steam or not— dropped 1.0 percentage point, to 79.7%, the same level as in August.
“On the scarcity of inputs, normalization is expected from the second half of next year. In this context, the sector ends 2021 with bottlenecks that have not yet been resolved, prompting a retreat in expectations,” added Perdigão.
.
I have over 8 years of experience in the news industry. I have worked for various news websites and have also written for a few news agencies. I mostly cover healthcare news, but I am also interested in other topics such as politics, business, and entertainment. In my free time, I enjoy writing fiction and spending time with my family and friends.
