You Sector Results of the Industrial Business Confidence Index (ICEI) show a drop in confidence in 21 of the 29 industrial sectors. Research by the National Confederation of Industry (CNI) shows that eight of these sectors went from trust to lack of trust: machinery and equipment (49.8 points); specialized services for construction (49.8 points); printing and reproduction (49.7 points); plastic material products (49.5 points); leather and leather articles (49.3 points); rubber products (49 points); perfumery, cleaning and personal hygiene (48.2 points); and furniture (47.8 points).
The index varies from 0 to 100 points. Values above 50 points indicate business confidence and values below 50 points indicate a lack of business confidence.
“The worsening of confidence is the result of the worsening assessment of businesspeople’s current conditions. Both the assessment of the Brazilian economy and the company itself worsened in April. The Industrial Survey and the Construction Industry Survey of the same month showed dissatisfaction with the financial situation and the difficulty in accessing credit in the first quarter of 2024, which may explain this worsening of confidence in the industry sectors”, says the manager of CNI Economic Analysis, Marcelo Azevedo.
Although the decline occurred in most sectors, the majority (18) remain confident. In April, two sectors showed an increase in confidence and passed the 50-point dividing line: biofuels (55.9 points) and computer, electronic and optical equipment (52.2 points).
Currently, the sectors with the highest confidence are maintenance and repair (59 points), biofuels (55.9 points), pharmochemicals and pharmaceuticals (55.5 points) and motor vehicles (54.2 points).
How is confidence by size and region?
Confidence fell for all company sizes, but among small companies, the drop of 1.6 points left the index at 49.7 points. In other sizes, the drop was smaller and did not make the index fall below the 50-point dividing line.
All regions continue to have high confidence, however, the North and Southeast showed significant reductions of, respectively, 2.7 points and 2.3 points in April. The Northeast remains the most confident region with 54.9 points. In the Central-West and South regions the variations were small, of +0.2 points and -0.3 points.
ICEI Sector Results
O ICEI, as a leading indicator of industrial performance, signals changes in trends in variables such as industrial production, employment and investments in industry. O ICEI Sector presents the results of the extractive industry, construction and transformation. The publication also provides confidence indices for the three sizes of company (small, medium and large) and for the five geographic regions of the country.
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