Brazil: Industrial business sentiment rises to seven-month high in January
Latest reading: The seasonally adjusted industrial business confidence index published by the Getúlio Vargas Foundation (Fundação Getúlio Vargas) went up to 96.1 in January, following December’s 92.6. As such, the reading moved closer to but remained below the 100-point threshold that separates optimistic from pessimistic sentiment among industrial firms. January’s result was the highest since June 2025. Firms’ sentiment was supported by improved demand that helped clear accumulated inventory. That said, sentiment remained pessimistic due to the still-complex macroeconomic environment and elevated interest rates.
In January, industrial businesses grew less pessimistic about expectations for the coming months (+95.7 vs +93.0 in December) and the current situation (+96.4 vs +92.3 in December).
Outlook: January’s result was above Q4 2025’s average, which bodes well for investment in the industrial sector in the first quarter of 2026.