The Industrial Confidence Index (ICEI) increased by 4.5 points in May compared to April, reaching 41.3 points. It was the biggest increase of the series, which began in January 2010. Although it remains a lack of confidence as the index remains below 50 points, the value of ICEI is the highest in 16 months. The information is the survey released by the National Confederation of Industry (CNI) on Monday (16).
As the executive manager of Research and Competitiveness CNI, Renato da Fonseca, the sharp rise in ICEI it can be explained by a sign that the political crisis is being resolved. ´If Michel Temer government conduct politically achievements the economic measures needed to solve the crisis, the ICEI maintain the growth trend,` said Fonseca. ´Entrepreneurs and society need to realize that there is an effort to make the fiscal adjustment, to the resumption of economic growth. Continuous improvement in confidence will contribute to growth as more optimistic entrepreneurs are more likely to invest,` he adds.
The high ICEI was driven mainly by improved expectations of industry, whose indicator increased by 5.7 points in May compared to April. The expectation index on the Brazilian economy expanded by 8.6 points and the prospects of the company increased by 4.1 points. The expectations index on the situation of the company reached 50.3 points, almost on the line of 50 points, which indicates that entrepreneurs do not expect worsening of business for the next six months. This indicator was below 50 points since March 2015.
According to the survey, which heard 3,137 companies from 2nd to May 12th, there was growing confidence in all regions companies of all sizes and the three industry segments – mining, manufacturing and construction. The ICEI is important because it anticipates production and investment trends. Pessimistic entrepreneurs reduce production and suspend investment, which further aggravated the economic scenario.
Source: CNI News Agency