Brazil: Industrial business confidence falls in April
Latest reading: The seasonally adjusted industrial business confidence index published by the Getúlio Vargas Foundation (Fundação Getúlio Vargas) declined to 96.0 in April, following March’s 96.8. As a result, the latest reading moved further below the 100-point threshold that separates optimistic from pessimistic sentiment. April’s decline ended a four-month streak of improvements and was the result of higher-than-normal inventories and heightened uncertainty due to the war in Iran. Additionally, still-restrictive monetary policy plus the industry’s sensitivity to oil price shocks hurt sentiment further.
In April, industrial businesses grew more pessimistic about expectations for the coming months (+95.5 vs +96.4 in March) and the current situation (+96.5 vs +97.2 in March).
Outlook: Industrial business sentiment in April was below the January–March average, signaling a slight increase in pessimism among industrial firms at the outset of Q2, boding ill for investment in the coming months.