Brazil: Business confidence deteriorates in June
Business sentiment in Brazil declined in June, with the Getulio Vargas Foundation’s (FGV, Fundaçao Getúlio Vargas) business confidence index falling to 100.1 points in June from 101.1 points in May. The index, however, remained just above the 100-point threshold that separates optimism from pessimism among businesses, where it has been for five consecutive months.
According to the FGV, the deterioration in June was driven by a more downbeat outlook on the current economic situation. In addition, an FGV analyst noted in the June press release the negative impact of a trucker strike in May. Meanwhile, confidence in the future economic situation rose to an over five-year high on the back of firms’ improved assessment of hiring and production expectations. However, the strong rise may in part be due to a low base effect.