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Industry Confidence Index goes up again in August, points CNI

posted Aug 16, 2013, 8:32 AM by Webmaster IMGroup
After registering the lowest reading since April 2009, the Index of Industrial Confidence (Icei) showed recovery in August, up 2.6 points from 49.9 points in July to 52.5 points in the current reading.

According to the National Confederation of Industry (CNI), responsible for the survey, the recovery of the indicator is important for the recovery of the economy, but the confidence level of the industry remains significantly low, since the value of August is the second lowest since the 2008 crisis.

The index ranges from zero to one hundred points and readings below 50 indicate pessimism. In August last year, it was 50.5 points. Its historical average is 58.7 points. The August index, therefore, is well below this level.

The expectations for the coming months improved and influenced the increased industry confidence indicator in August. The expectation index reached 56.9 points this month, 2.5 points more than in July. On the conditions of the economy, the prospects reached 49.7 points, reaching 60.5 points when it comes to the future of the company.

But entrepreneurs still noticing worsening of current conditions - the Brazilian economy and the company itself, with indicators below 50 points. In regards to the Brazilian economy, says the confederation in a note, the good news is that the situation should not get worse in the next six months (indicator almost on the line of 50 points).

The three sectors that compose the survey reported increased confidence. The processing industry index rose from 49.2 in July to 51.9 in August. The indicator for the construction industry rose from 51.2 points to 52.9 points. And the mining industry is now 53.5 points against 52.3 points in July.

Increased confidence was observed in all sizes of companies, especially the largest ones, which grew more significantly. The indicator for large industries increased from 50.4 points to 53.2 points. For the middle companies the average was 51.7 points (49.1 in July) and for the small companies the number is 52.1 points (49.9 points last month).

The historical series of Icei goes back to 2007, on a quarterly basis, but became a monthly survey only since 2010.

The survey was conducted between the 1st and the 13th of August, with 2,513 companies, of which 901 are small, 988 medium and 644 large.

(Eduardo Campos | Valor Econômico)